Forum Search: capital markets
Re: CapEx and capital lease
Yes, you are correct from a purely technical standpoint. However, keep in mind that such capital lease increases would be actually reflected in CFF, so the net impact is still properly reflected in the model. From an accounting debits and credits perceptive, capital lease liability on the BS would g... Read More
Yes, you are correct from a purely technical standpoint. However, keep in mind that such capital lease increases would be actually reflected in CFF, so the net impact is still properly reflected in the model. From an accounting debits and credits perceptive, capital lease liability on the BS would g... Read More
CapEx and capital lease
Shouldn't capital lease portion of CapEx be excluded from CFI calculation as capital lease by defination is funded by capital lease rather than cash?
Shouldn't capital lease portion of CapEx be excluded from CFI calculation as capital lease by defination is funded by capital lease rather than cash?
Re: FCFF (Unlevered Free Cash Flow)
You're thinking of free cash flow to equity (FCFE), which would include the effect of net borrowing/repayment of debt. Instead, we typically calculate FCFF, which is computed before any effects of capital structure.
You're thinking of free cash flow to equity (FCFE), which would include the effect of net borrowing/repayment of debt. Instead, we typically calculate FCFF, which is computed before any effects of capital structure.
FCFF (Unlevered Free Cash Flow)
Hi, when calculating unlevered free Cash Flow, we are deducting capex from the cash flow of the company, but net borrowing is not added. What if the company borrowed money to finance the capex? so for valuation purposes, for that year, FCFF will be negative. Is there a way to correct for it? Thanks... Read More
Hi, when calculating unlevered free Cash Flow, we are deducting capex from the cash flow of the company, but net borrowing is not added. What if the company borrowed money to finance the capex? so for valuation purposes, for that year, FCFF will be negative. Is there a way to correct for it? Thanks... Read More
Re:
Hi,
You can find this video under My Courses, in the "Overview of Financial Markets" package. Click on "Supplementary Video Exhibits" and the third video in the listing is "Share Repurchase."
Hi,
You can find this video under My Courses, in the "Overview of Financial Markets" package. Click on "Supplementary Video Exhibits" and the third video in the listing is "Share Repurchase."
"Share Repurchases" video online at www.wstselfstudy.com under FREE EXHIBITS
Hi
In the last Q&A you refer to the free "Share Repurchases" video online at www.wstselfstudy.com under FREE EXHIBITS to have a better understanding of the opportunity cost of funding Capital structure components. I can`t find the video. Could you please help? Thank you
Hi
In the last Q&A you refer to the free "Share Repurchases" video online at www.wstselfstudy.com under FREE EXHIBITS to have a better understanding of the opportunity cost of funding Capital structure components. I can`t find the video. Could you please help? Thank you
Re:
Two reasons: 1) the double digit growth was primarily due to acquisitions and not organic growth (covered in the How to Analyze a 10K course) 2) the relationship between CapEx and depreciation is fairly close (however do note that HRH is a services-based company so while CapEx and depreciation may... Read More
Two reasons: 1) the double digit growth was primarily due to acquisitions and not organic growth (covered in the How to Analyze a 10K course) 2) the relationship between CapEx and depreciation is fairly close (however do note that HRH is a services-based company so while CapEx and depreciation may... Read More
Total Debt
Why is there a total debt cell ($34,778) but then when we calculate the total debt/total capitalization, and the total debt/EBITDA the numerator is total debt + preferred stock + minority interest?
Why is there a total debt cell ($34,778) but then when we calculate the total debt/total capitalization, and the total debt/EBITDA the numerator is total debt + preferred stock + minority interest?
Re: IPO Valuation
In your context, the DCF value (TEV) would be post-money if your projections and cash flows include the effect of the IPO proceeds. Therefore, indeed it would e post-money valuation. Correct, the cash proceeds from the IPO would NOT be considered in this context, because the IPO cash proceeds would ... Read More
In your context, the DCF value (TEV) would be post-money if your projections and cash flows include the effect of the IPO proceeds. Therefore, indeed it would e post-money valuation. Correct, the cash proceeds from the IPO would NOT be considered in this context, because the IPO cash proceeds would ... Read More
How should a working capital target be chosen for a business that has seasonal net working capital (for example, every year a company must build up inventory and its suppliers do not take credit, or bonuses for employees are paid at the end of each fiscal year). From what I have seen, many practitio... How should a working capital target be chosen for a business that has seasonal net working capital (for example, every year a company must build up inventory and its suppliers do not take credit, or bonuses for employees are paid at the end of each fiscal year). From what I have seen, many practitioners look at average net working capital for the past 12 months; however, would it be incorrect to use this methodology for a seasonal business since doing so would result in a working capital target that would be overly inflated or deflated in relation to the amount typical for the corresponding season? Read More