Forum Search: capital markets
RE: Corporate Valuation Methodologies: capital lease
Correct points and observations but operating leases are also tax deductible. Of course there is the whole timing difference of depreciation and interest but putting that aside, the more significant figure is the entire amount that is off balance sheet vs on balance sheet. Keep in mind rating agneci... Read More
Correct points and observations but operating leases are also tax deductible. Of course there is the whole timing difference of depreciation and interest but putting that aside, the more significant figure is the entire amount that is off balance sheet vs on balance sheet. Keep in mind rating agneci... Read More
RE: Company Profiles: Questions about slides
Total capital includes all sources of capital - primarily debt and equity. You don't include cash because after you raise the $ from debt and equity, you get cash. However, for valuation and TEV purposes you use net debt to arrive at equity value, or the residual value to owners which is net of ... Read More
Total capital includes all sources of capital - primarily debt and equity. You don't include cash because after you raise the $ from debt and equity, you get cash. However, for valuation and TEV purposes you use net debt to arrive at equity value, or the residual value to owners which is net of ... Read More
RE: AFM Core Model: Current Portion of LT Debt
Keep in mind that commercial paper is split out separately. Our assumptiom says no change in CP- so no borrowing or paydown. However if there was a paydown, we would consider it as part of your required repayment. In reality there is a paydown of CP since it is short term debt for working capital pu... Read More
Keep in mind that commercial paper is split out separately. Our assumptiom says no change in CP- so no borrowing or paydown. However if there was a paydown, we would consider it as part of your required repayment. In reality there is a paydown of CP since it is short term debt for working capital pu... Read More
AFM Enhancements: Valuation Question
My name is Jennifer Shi, a colleague of Nadia Sandi. We work in International Finance Corporation of the World Bank. We are currently reviewing the training modules. I have a real life valuation question. Appreciate your guidance. We are using DCF to value an existing equity investment. T... Read More
My name is Jennifer Shi, a colleague of Nadia Sandi. We work in International Finance Corporation of the World Bank. We are currently reviewing the training modules. I have a real life valuation question. Appreciate your guidance. We are using DCF to value an existing equity investment. T... Read More
RE: AFM Enhancements: Valuation Question
Just relized that you have already responded to my question. A follow up question: if we know for sure that the capital increase is to happen, like you suggested, we model out the company as a going concern with all known facts. I think we should calculate the valuation of our current holding by m... Read More
Just relized that you have already responded to my question. A follow up question: if we know for sure that the capital increase is to happen, like you suggested, we model out the company as a going concern with all known facts. I think we should calculate the valuation of our current holding by m... Read More
RE: AFM Enhancements: Valuation Question
Correct, you would use your diluted ownership %age after the "certain and known" anticipated capital raising.
Correct, you would use your diluted ownership %age after the "certain and known" anticipated capital raising.
AFM Enhancements: book value of equity to calc total capital
when you are calculating the total capital here, you are using the book value of equity to calculate, why we cann't use the market value of the equity, becuase that is more up-to-date.
thanks
when you are calculating the total capital here, you are using the book value of equity to calculate, why we cann't use the market value of the equity, becuase that is more up-to-date.
thanks
RE: AFM Enhancements: book value of equity to calc total capital
These ratios are standard ratios in a credit context, determined by the banks (lending institutions) and rating agencies. The idea here is that you are attempting to capture "liquidation value" of sorts and thus, book value is used not market value. The company doesn't actually receive market value ... Read More
These ratios are standard ratios in a credit context, determined by the banks (lending institutions) and rating agencies. The idea here is that you are attempting to capture "liquidation value" of sorts and thus, book value is used not market value. The company doesn't actually receive market value ... Read More
AFM Enhancements: Capitalization calculations
Hi there, I've got 2 doubts related to this module that you may be able to help me with: 1. Why our Total Capital calculation Line 18 does not include the Minority Interest figure? (once it is a source of capital as well) 2. Why are we considering the Capital Leases interest expense but not... Read More
Hi there, I've got 2 doubts related to this module that you may be able to help me with: 1. Why our Total Capital calculation Line 18 does not include the Minority Interest figure? (once it is a source of capital as well) 2. Why are we considering the Capital Leases interest expense but not... Read More
Hi About the capital lease, the instructor mentioned in the lecture, his view of capital lease is not very positive, it shows more debt, less efficient for the asset turnover ratios, however, capitalized also means future depreciation, you can get the tax deduction for the capital lease, perhaps ... Hi
About the capital lease, the instructor mentioned in the lecture, his view of capital lease is not very positive, it shows more debt, less efficient for the asset turnover ratios, however, capitalized also means future depreciation, you can get the tax deduction for the capital lease, perhaps certain companies just want to take advantages of the tax shield. Read More