Posts by: Guest 1
Re: Software for Financial Analyst
THANK YOU SO MUCH. I WILL PURCHASE PC WINDOW NOW.
THANK YOU SO MUCH. I WILL PURCHASE PC WINDOW NOW.
Re: Advanced bank financial modeling question
Thank you. One more question: when calculating the future implied stock price we somehow had the 2009 implies price equals to 35.25$. How did we get to this number?
Thank you. One more question: when calculating the future implied stock price we somehow had the 2009 implies price equals to 35.25$. How did we get to this number?
WACC tax rate adjustment for bea
Hey Hamilton, got a quick theoretical question for you re the WACC and delevering beta: is there any theoretical defense for assuming that all of the comps’ betas get delivered assuming a standard 35% tax rate? Or do you have to delever comps’ betas using each company’s individual tax rate? Iâ... Read More
Hey Hamilton, got a quick theoretical question for you re the WACC and delevering beta: is there any theoretical defense for assuming that all of the comps’ betas get delivered assuming a standard 35% tax rate? Or do you have to delever comps’ betas using each company’s individual tax rate? Iâ... Read More
Net Debt and Working Capital
Net debt includes all debt - short and long-term less excess cash. The revolver is often an operating line secured by accounts receivable. I have seen analysts calculate net debt as long-term debt net of working capital surplus/deficiency. Is this correct? When I want to use an EBITDA multiple ... Read More
Net debt includes all debt - short and long-term less excess cash. The revolver is often an operating line secured by accounts receivable. I have seen analysts calculate net debt as long-term debt net of working capital surplus/deficiency. Is this correct? When I want to use an EBITDA multiple ... Read More
Merger Modeling Basics: About the Cash balance on target
Hi there, In our model we assume that the Target's current debt is refinanced. As such, we set our Debt and Equity financing to the Target's Enterprise Value. By doing that we're saying that from the Target's existing Total Debt of $50m, we are refinancing it using: $22.5m equity (as per the 50% ... Read More
Hi there, In our model we assume that the Target's current debt is refinanced. As such, we set our Debt and Equity financing to the Target's Enterprise Value. By doing that we're saying that from the Target's existing Total Debt of $50m, we are refinancing it using: $22.5m equity (as per the 50% ... Read More
Re: Problem with choose and average formulas
All of my formulas were correct (I am typing now at my home computer, which has a sticky keyboard - hence the missing Q and other letters in my message.) However, the problem was solved in my company x model at least in part because I was able to remove a circular reference elsewhere in the formula... Read More
All of my formulas were correct (I am typing now at my home computer, which has a sticky keyboard - hence the missing Q and other letters in my message.) However, the problem was solved in my company x model at least in part because I was able to remove a circular reference elsewhere in the formula... Read More
Deferred Tax
Hi, I took the accounting bootcamp and I recall the discussion regarding deferred tax; however, I tried finding some additional examples online to reinforce this concept in my mind and came across something which confuses me even more than before! In short, I realize deferred tax is basically due... Read More
Hi, I took the accounting bootcamp and I recall the discussion regarding deferred tax; however, I tried finding some additional examples online to reinforce this concept in my mind and came across something which confuses me even more than before! In short, I realize deferred tax is basically due... Read More
Re: Estimated Taxes
Hi, I am having trouble understanding the impact of NOL on the cash flow statement. Correct me if I'm wrong on this: If I apply a NOL carry forward this year to reduce my taxable income, my net income will increase by tax rate x NOL balance. On my cash flow statement, my cash has already increased... Read More
Hi, I am having trouble understanding the impact of NOL on the cash flow statement. Correct me if I'm wrong on this: If I apply a NOL carry forward this year to reduce my taxable income, my net income will increase by tax rate x NOL balance. On my cash flow statement, my cash has already increased... Read More
Free Cash Flow Tax Adjustment for Depreciation
When estimating free cash flows for a valuation, every reference I have explains to add back depreciation & amortization to NOPAT. Â I know that this is because the D&A cash flows are only book implied. Â However, at what point do you adjust cash flows for the real effect of the tax shield t... Read More
When estimating free cash flows for a valuation, every reference I have explains to add back depreciation & amortization to NOPAT. Â I know that this is because the D&A cash flows are only book implied. Â However, at what point do you adjust cash flows for the real effect of the tax shield t... Read More
I have been on the Advancd LBO Modeling course, and some of the formulas that Mr. Lin introduces actually aren't doing what they are supposed to do, and I don't know why. Specifically, in the Interest expense section at the 34th minute, he asks us to put in the following formula =Choose($P$64,Q34,av... I have been on the Advancd LBO Modeling course, and some of the formulas that Mr. Lin introduces actually aren't doing what they are supposed to do, and I don't know why. Specifically, in the Interest expense section at the 34th minute, he asks us to put in the following formula =Choose($P$64,Q34,average(Q34,37))*$P$34. This fomula is meant to respond to a 1 or a 2 in cell P64 to use either the begining balance or the average balance for a given loan amount. I filled out the COTT data with him online, and even though the average balance falls from Year 1 to Year 5 for theTerm Loan, the interest amount doesn't change if you switch from a 1to a 2 in cell P64. I have replicated this with another company (call it company X) in a similar model and it doesn't work there either.
Separately, with my company X model, which I also filled in following Mr. Lin, my term loan balances go down because of excess cash flow payments that get directed there (above and beyond the Mandatory Debt Repayments), per his instructions, but the interest expense does not go down from Year 1 to Year 5, even though the Term Loan is paid off in Year 4, nor does it change if I switch from a 1 (Beginning Balance) to a 2 (Average Balance).
Finally, In year 4 in my company X model, the beginning balance is 149.1, the Mandatory Debt Paydown is (112.5), but the Borrowing/(Paydown) line shows a (59.1) and the ending balance shows 0, even though that math doesn't work. I have tested these again and again against the video and all my formulas are correct. So what is going on?
These problems hve stopped me in my tracks from doing more models on my own.
Thanks. Read More