Street Prep Premium Exam Study Guide 2024 Updates:transaction Comps Modeling Wall Street Prep Exam

• Acquirer purchases 100% of target by issuing additional stock to purchase target shares • No premium is offered to the current target share price • Acquirer share price at announcement is $30 • Target share price at announcement is $50 • Acquirer EPS next year is $3.00 • Target EPS next year is $2.00 • Acquirer has 4 thousand shares outstanding • Target has 2 thousand shares outstanding What is the exchange ratio for the deal? {Ans: 1.7x}Pushdown accounting: {Ans: Refers to the establishment of a new accounting and reporting basis in an acquired company's separate financial statements}Company X's current assets increased by $40 million from 2007-2008 while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was {Ans: a decrease of 15 million}to calculate interest expense in the future, you should do which of the following {Ans: apply a weighted average interest rate times the average debt balance over the course of the year}A debt holder would be primarily concerned with which of the following multiples? I. Enterprise (Transaction) Value / EBITDA II. Price/Earnings III. Enterprise (Transaction) Value / Sales {Ans: