1- In the cash flow statement, cash and cash equivalents end of period 2017 is NOT equal to:

  • Cash and cash equivalents on the 2017 balance sheet
    Cash and cash equivalents beginning of period 2018
    Cash and cash equivalents on the 2018 balance sheet
    Cash and cash equivalents beginning of period 2017 + net cash provided by operating, investing and financing activities + foreign currency effect on cash and cash equivalents

2- If a company has capital leases, as a financial analyst, how would you treat it?

  • Exclude it from the financial statement
    As additional paid-in capital
    As debt
    As common shares

3- Where can you find a company’s stock-based compensation?

  • On the cash flow statement – financing activities
    On the income statement – non-operating expenses
    On the income statement – operating expenses
    On the cash flow statement – operating activities

4- Which of the following do you NOT include when calculating the closing balance of PP&E?

  • PP&E acquired under capital or financing leases
    Cash capital expenditures
    PP&E acquired through acquisitions
    Changes in working capital

5- Calculate a company’s e-Commerce market share in their country based on the following hypothetic information:
First party sales 10 million
Third party selling commission 5 million
Third party commission charge 20%
Total country eCommerce 290 million

  • 9%
    12%
    4%
    5%

6- Assuming the company will have the same inventory days in 2018 and 2019. What is the forecasted inventory in 2019 based on the information below?
2018 Revenue 6,500
2019 Revenue 7,600
2018 Cost of sales 3,800
2019 Cost of sales 4,100
2018 Inventory 1,500

  • 1,528.6
    1,618.4
    1,944.4
    1,753.8

7- Why is accounts payable projected using an assumption based on cost of sales? Select the best answer.

  • Cost of sales typically has payment terms
    Accounts payable is part of working capital
    It is a practice mandated by financial institutions
    It is an accounting rule under IFRS

8- Which of the following formula is used to calculate Free Cash Flow to Firm (FCFF)?

  • FCFF = EBIT + Depreciation & Amortization + Net Working Capital adjustment + Cash Capex + Stock Based Compensation + Other Non-Cash Expenses
    FCFF = Net Operating Profit After Tax + Depreciation & Amortization – Tax Expense – Interest Expense + Cash Capex
    FCFF = Net Operating Profit After Tax + Depreciation & Amortization + Net Working Capital adjustment – Cash Capex + Stock Based Compensation + Other Non-Cash Expenses
    FCFF = EBIT + Depreciation & Amortization + Net Working Capital adjustment – Cash Capex – Stock Based Compensation + Other Non-Cash Expenses

Download the file named “Comps Analysis – Question” and complete the calculations to answer questions 9-12.

9- What is the mean 2019E EV/Revenue multiple in the Online Direct Sales comps group in 2019?

  • 0.8x
    1.1x
    0.6x
    1.2x

10- What is Company Co.’s enterprise value in the Service Package segment based on 2019E total revenue and 2019E mean EV/Revenue multiple?

  • 191,032
    110,275
    184,314
    104,184

11- What is Company Co.’s total enterprise value calculated based on 2019E revenue and 2019E mean EV/Revenue multiple?

  • 862,632
    802,836
    953,141
    788,531

12- What is Company Co.’s target price calculated based on 2019E revenue and 2019E mean EV/Revenue multiple?

  • 1,511
    1,363
    1,266
    1,242

Download the file Advanced Modeling – Scenarios and FCF, follow the instructions and answer question 13 – 15 based on this model.

13- Complete Live Case section in the Scenario worksheet. There are 4 scenarios in this model: Consensus, Bull, Bear, and Other. The numbers in the live case should reflect one of the cases based on cell K14, which is dynamically linked to the scenario selected in the dropdown menu at the top of the worksheet. What formula will you use to fill cell G21 (online stores for 2018E)?

  • =CHOOSE($K$14,G76:Q238)
    =CHOOSE($K$14,G76,G130,G184,G238)
    =CHOOSE($B$1,G76,G130,G184,G238)
    =CHOOSE($B$1,G76:Q238)

14- Link the live case with the Historical Analysis section in the Financial Model worksheet and complete the Valuation section. In the consensus case, what is the EBITDA excluding stock-based compensation (SBC) in 2024?

  • 162,565
    126,043
    143,079
    112,115

15- In the bull case, what is the free cash flow to the firm (FCFF) if all cash CAPEX in 2027?

  • 98,662
    114,662
    148,361
    125,384

Download the file Advanced Modeling – DCF Analysis, complete the Valuation section in the Financial Model worksheet, and answer question 16 – 20.

16- In the consensus case, what is the exit multiple terminal value on Dec 31, 2028?

  • 1,605,714
    2,232,891
    2,151,659
    1,853,611

17- In the consensus case, what is Amazon’s enterprise value on the valuation date using the exit multiple terminal value?

  • 1,414,325
    1,029,071
    1,378,837
    2,088,584

18- What is the expected AMZN value per share in 2028 in the bear case using the exit multiple terminal valuation method?

  • 7,721
    5,038
    4,892
    3,570

19- Calculate AMZN’s target share price using the consensus case assumptions and exit multiple terminal value, then perform a sensitivity analysis. What will the share price be if the exit multiple is 16.0x and the discount rate is 10.5%?

  • 2,717
    2,473
    2,686
    2,502

20- What will the internal rate of return (IRR) be if the exit multiple is 10.0x and the purchase price per share is $1,700 in the bull case (given that the terminal value is calculated using the exit multiple method)?

  • 15.4%
    13.5%
    13.1%
    13.8%

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