Forum Search: portfolio risk management
Ibbotson Equity Risk Premium
Understood in the class that Ibbotson's sheet on Equity Risk Premium (ERP) will be made available in the Forum, may I know how can I find it please? Thanks.
If whole sheet cannot be shared, may I know the latest ERP (2017) for Philippines please?
Understood in the class that Ibbotson's sheet on Equity Risk Premium (ERP) will be made available in the Forum, may I know how can I find it please? Thanks.
If whole sheet cannot be shared, may I know the latest ERP (2017) for Philippines please?
Re: Capex estimation
CapEx and depreciation are not supposed to necessarily match. The correct way to project depreciation is covered in greater detail in a future course: Advanced Financial Modeling - Enhancements to the Core Model. In coming up with a placeholder estimate for depreciation, we initially use % of revenu... Read More
CapEx and depreciation are not supposed to necessarily match. The correct way to project depreciation is covered in greater detail in a future course: Advanced Financial Modeling - Enhancements to the Core Model. In coming up with a placeholder estimate for depreciation, we initially use % of revenu... Read More
Wrong number used for Taget ROC
The ROC for Target in the Asset Management Ratios should be 11.9%. The number used in the video for Total debt if off by $1000. Instead of $8,872, it should be $9,872 that is used.
The ROC for Target in the Asset Management Ratios should be 11.9%. The number used in the video for Total debt if off by $1000. Instead of $8,872, it should be $9,872 that is used.
Re: Future Stock-Based Compensation and Adding it to Share Count
We've actually answered a few questions on this forum about stock-based compensation. Here's one example that covers a fair amount: https://www.wstuniversity.com/forum/financial_modeling_topics-3/financial_modeling-9?single=1651&parent=1650 In summary, the best way is typically to model it as a p... Read More
We've actually answered a few questions on this forum about stock-based compensation. Here's one example that covers a fair amount: https://www.wstuniversity.com/forum/financial_modeling_topics-3/financial_modeling-9?single=1651&parent=1650 In summary, the best way is typically to model it as a p... Read More
Re: WACC
1) Strict interpretation of fundamental concepts of CAPM state that the risk free rate should always be the UST (i.e. 10 year UST or 20 year UST bootstrapped from the 10- and 30-year UST). A sovereign spread should be added in the market risk premium portion of CAPM to account for the country specif... Read More
1) Strict interpretation of fundamental concepts of CAPM state that the risk free rate should always be the UST (i.e. 10 year UST or 20 year UST bootstrapped from the 10- and 30-year UST). A sovereign spread should be added in the market risk premium portion of CAPM to account for the country specif... Read More
WACC
1. When calculating cost of equity (in order to derive WACC) by CAPM, which country's risk free rate and market risk premium should be adopted? Let's say it's a Korean company doing most of its business in Korea, going to list in HK, but reporting currency is USD... 2. Following last question, whe... Read More
1. When calculating cost of equity (in order to derive WACC) by CAPM, which country's risk free rate and market risk premium should be adopted? Let's say it's a Korean company doing most of its business in Korea, going to list in HK, but reporting currency is USD... 2. Following last question, whe... Read More
Re: Cash
Also, in the free cash flow to firm calculation, why do they calculate income tax using EBIT * tax rate instead of getting the actual tax from EBT * tax rate, the difference being the I as interest expense or interest income. Why treat the tax savings from debt-tax shield (delta) as part of free cas... Read More
Also, in the free cash flow to firm calculation, why do they calculate income tax using EBIT * tax rate instead of getting the actual tax from EBT * tax rate, the difference being the I as interest expense or interest income. Why treat the tax savings from debt-tax shield (delta) as part of free cas... Read More
Re: Reverse Morris Trust (RMT)
A Reverse Morris Trust is a transaction that combines a divisive reorganization (spin-off) with an acquisitive reorganization (statutory merger) to allow a tax-free transfer (in the guise of a merger) of a subsidiary under United States law. Structure: A Reverse Morris Trust is used when a paren... Read More
A Reverse Morris Trust is a transaction that combines a divisive reorganization (spin-off) with an acquisitive reorganization (statutory merger) to allow a tax-free transfer (in the guise of a merger) of a subsidiary under United States law. Structure: A Reverse Morris Trust is used when a paren... Read More
Stock Options Tables in 10ks do not seem to be itemized like they are in the course
Throughout school and Wall ST Training courses I have always learned to construct fully diluted shares outstanding by looking at a table of options that presents several strike prices and several corresponding share amounts for a given year.However, in practice I rarely see stock tables in 10Ks pres... Read More
Throughout school and Wall ST Training courses I have always learned to construct fully diluted shares outstanding by looking at a table of options that presents several strike prices and several corresponding share amounts for a given year.However, in practice I rarely see stock tables in 10Ks pres... Read More
Unfortunately, due to copyright reasons, we cannot post or disseminate - you'll have to inquire directly with Ibbotson, which is now owned by Morningstar.