Welcome to your Accounting and Valuation Primer exam. The exam consists of 20 multiple choice questions testing the content covered in your FSA and Valuation classes with Pillars of Wall Street. You will have 45 minutes to complete and submit the exam. You may use your laminated handouts, printed materials, or any notes that you have taken in class. You may not however use your neighbor, the internet, your cell phone, or any other device.
If you have any questions, please ask your instructor, but know that he or she is not able to answer any question concerning the content of the exam.
Please input your name, the name of your firm - Cantor Fitzgerald - and your email address. These results will be provided to Cantor Fitzgerald following your training.
If beginning retained earnings is 200, net income is 80 and ending retained earnings is 230, what are dividends?
If Chip Capital acquired Laptop International for 10 billion, writing a 3 billion equity check, and upon exit 5 years later walked away with 7 billion in equity, what is Chip Capital’s IRR?
If EBIT is 300, the long term ETR is 40%, D&A is 75, capex is 45 and the decrease in OWC is 19, what is the free cash flow that year?
If the enterprise value is 250, debt is 45, cash and cash equivalents is 40, goodwill is 10 and diluted shares outstanding is 100, what is the implied share price?
If you are projecting PP&E, and you know the beginning balance of PP&E is 800, the capital expenditures for the year are 200 and depreciation is 50, what is the ending PP&E balance?
If a company’s income statement doesn’t have lines for D&A, does that mean the company has no D&A?
Which of the following is a relative valuation methodology?
You are using your comparable company set to value Jimmy Jones & Co. The average EBITDA multiple of the comps is 7.0x. Jimmy Jones’ EBITDA is 200M, and their net debt is 50M. What is Jimmy Jones’ implied equity value?
Which of the following is NOT a financing cash flow?
Which of the following when viewed in isolation will NOT increase LBO returns?
If Bubble Gum Co. pays its employees salaries of $50M this year, what is the impact on the balance sheet this year?
Calculate the enterprise value of Mary’s Mittens given the following information and table below:
Mary’s Mittens has a WACC of 8.0%. Assume end of year convention for discounting of cash flows and terminal value.
Which of the following is NOT an operating cash flow?
If the 10 year government bond yield is 3.0%, levered beta is 1.2 and the market risk premium is 6.0%, what is the cost of equity?
If enterprise value is 750, debt is 250 and cash is 150, what is the equity value?
If the target capital structure of Larry’s Lollipops is 70.0% equity and 30.0% debt, the cost of equity is 15.0%, the cost of debt is 7.0%, and the MTR is 30.0%, what is the WACC?
Using the operating working capital statistics for John’s Bakery below, calculate the days funding required or provided. Please specify whether funds are “used” (tied up) or “freed” (available).Accounts payable days: 25Inventory days: 15Accounts receivable days: 30
Time is Up!