Question

Question 1

1. Which of the following is likely to be a non-recurring item on an income statement?

   		SG&A
   		Interest expense
   		Depreciation
   		Goodwill impairment Question 2 What is a common multiple to use in a comparable companies analysis for a retail company? EV / Subscribers EV / Reserves EV / Square footage EV / Production What is EBITDA a proxy for? Sales Growth Cash flow Which calculation measures the return generated by all capital provided to a company? ROE ROA ROIC ROI Calculate COGS given the following information. Sales: $800.0m SG&A: $250.0m EBITDA: $300.0m D&A: $50.0m $250.0m $200.0m $500.0m $300.0m 1

Answer 1

question 1:

D.goodwill impairment.

Goodwill impairment is not a regular occurrence and will not appear every year in financial statements.

question 2:

C.EV / Square footage.

EV / square footage would help in comparing companies in retail business.

question 3:

C.cash flow.

EBITDA is a proxy for cash flow.

question 4:

C.ROIC.

return on invested capital = operating income *(1-tax rate) / invested capital.

question 5:

A.$250 m.

COGS =sales - SG and A -EBITDA

=>800-250-300

=>$250