Posts by: Guest 1| Wall St. Training

General Inquiry
How could you line in a pivot table and not make it come out of the total?

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added 11 years ago

Convertible Debt Adjustment
In the Complex Trading Comps example, Costco has zero-coupon convertible subordinated notes due in 2017 with face value of $900M and a max shares convertible of 9.4M. However, in the 10-K it clearly says that $329.M in principal amount has already been adjusted, yet in explaining how to account for ... Read More

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by Guest 1.

added 11 years ago

Negative Goodwill
I am working an a case where the purchase price of a company is far below its market cap. This will definately create negative goodwill. I have read that under IFRS this negative goodwill will appear on the B/S as a negative figure. But there was an obligation to report as income on the P&L the ... Read More

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by Guest 1.

added 11 years ago

Re: Published M&A and LBO Deal Information
Thanks for the speedy response!

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by Guest 1.

added 11 years ago

Re: Convertible Debt Adjustment
Sorry, but I realized I have a handful of related, follow-up questions to this as well. Admittedly my understanding of convertibles is somewhat limited, which is the source of most of these questions. (4) This is related to the original question of this post: referring to the Costco 10-Q, pg 26, in... Sorry, but I realized I have a handful of related, follow-up questions to this as well. Admittedly my understanding of convertibles is somewhat limited, which is the source of most of these questions.

(4) This is related to the original question of this post: referring to the Costco 10-Q, pg 26, in the Long-Term Debt section, it clearly says that in the 1H of fiscal 2005, $266.6M of principal was converted into 9.4M shares and in 1H of 2006, $164.9M of principal was converted into 5.6M shares. I don't understand how the sum of these share totals is exceeding the max shares convertible figure of 9,430,147 stipulated in the 10-K for the 3.5% zero-coupon converts. My understand of convertibles are that there is a defined amount of shares convertible for each note/bond at a predetermined conversion price. Granted this understanding comes from interest-bearing converts with $1000 par and say 20:1 conversion ratio, i didn't think it would differ in mechanics with zero-coupon. Could you explain this?

(4b) If zero-coupon and int-bearing are different in nature, how so?

(5) As an investor, why don't we compare the current stock price of Costco to its initial conversion price of $22 (per 10-K) for conversion decision making?

(6) Also, for some reason i thought you need to buy the underlying stock from the company as part of the conversion so shouldn't cash and APIC also go up in the accounting entry, not just debt reduction and O/S increase?

(7) Lastly, let's say we were to convert based on the analysis in the 10-K. However, as Hamilton says, we shouldn't pull from differing time periods (much like the cap leases exclusion from the debt calculation). Hence, using the info we got from the 10-K to determine the conversion would be inaccurate since there should be a newer PV of principal on the books as of the 10-Q, except that they don't disclose it. In that case, what do you do? Use best available info, as of 10-K? Or disregard, as with the practice of the cap leases?

Sorry.... so many questions. Read More

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by Guest 1.

added 11 years ago

Re: Toggle Reference File Links
That worked great. Thank you!

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by Guest 1.

added 11 years ago

Sources & Uses for less than 100% LBO
What is the proper way to set up sources and uses for an LBO where the sponsor is acquiring less than 100% of the target? I have typically included lines for roll-over equity in both the S&U in order to get the value of the total equity (rollover and purchased) from the sources to equal the equi... Read More

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by Guest 1.

added 11 years ago

Excel Question
If you have to worksheets; one is all the stocks in the S&P and another with just Argentinian stocks and you want to see which ones overlap, what do you do? I did a vlookup but the problem is that some have the same names but some have periods, commas or extra spaces in the names so you cant do ... Read More

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by Guest 1.

added 11 years ago

startups
Can you provide some guidance on valuing startups?

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by Guest 1.

added 11 years ago

Off Balance Sheet Capital Commitment
Hi WST, I am evaluating a company and come across a disclosure on its financial report stating that there is, say, XYZ amount of capital commitment for building construction not included in the financial statements. So my question is should we capitalize that capital commitment on the balance sheet... Read More

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by Guest 1.

added 11 years ago