Original fictional practice. No account or network needed to read this handout. Work independently before asking for hints; show your reasoning, signs and units. Do not include personal or employer-confidential information.
A warehouse buys equipment for 144 cash at the start of the year. Walk through the first year across all three statements.
Amounts $m. Six-year straight-line life, no salvage. Book=tax depreciation. 25% tax shield usable immediately. No financing, WC or dividends. The company has sufficient other taxable income to absorb the deduction.
My approach: ______________________________
My calculation and explanation: ______________________________
What would change my answer? ______________________________
A company has $90 million of EBIT, $18 million of depreciation and amortization, and $26 million of capital expenditures. Its operating working capital increases by $12 million. Assume a 25% tax rate. What is its unlevered free cash flow?
Enter your answer in millions. Operating working capital excludes cash and financing debt.
My approach: ______________________________
My calculation and explanation: ______________________________
What would change my answer? ______________________________
A company has 50 million basic shares, 10 million options with strike 8, and stock price 20. Using treasury stock method, find net new shares and diluted shares.
All options exercisable and in the money. Ignore taxes and other dilutive securities.
My approach: ______________________________
My calculation and explanation: ______________________________
What would change my answer? ______________________________
A logistics company has EBITDA 84, a 7.5x EV/EBITDA multiple, debt 210, excess cash 54 and 30 million diluted shares. Find EV, equity value and per-share value.
Amounts $m except share price; no preferred, NCI or other claims. Debt at stated value.
My approach: ______________________________
My calculation and explanation: ______________________________
What would change my answer? ______________________________
Acquirer net income 120, shares 40. Target net income 24. Cash purchase 300 funded from excess cash earning 4% pre-tax. Tax 25%. Find pro forma EPS and accretion.
Amounts $m. Full-year ownership, no synergies, fees, purchase accounting amortization or new shares. Enter accretion as decimal.
My approach: ______________________________
My calculation and explanation: ______________________________
What would change my answer? ______________________________
This is not a hiring-readiness assessment. Your facilitator should explain what observations are retained and for how long. Sharing work is voluntary.
Assume EBITDA of $72 million, debt of $190 million and excess cash of $30 million. Use an illustrative 7–9× EV/EBITDA range and an 8× base case. The seller asks $430 million for the equity. Calculate the equity range and the asking-price multiple, then recommend a position. If $8 million of EBITDA depends on an unverified margin improvement, how does your base case change? Explain the first diligence request you would make. These are fictional assumptions, not market quotes.