Posts by: Guest 1
Free Cash Flow to Firm vs. Free Cash Flow to Equity
Full Question: When calculating free cash flow to equity, we adjust the capex+working capital+depreciation numbers so that it represents only the equity portion. That makes sense because the equity shouldn't be responsible for all the cash outflows of the firm. However, when I think about the physi... Read More
Full Question: When calculating free cash flow to equity, we adjust the capex+working capital+depreciation numbers so that it represents only the equity portion. That makes sense because the equity shouldn't be responsible for all the cash outflows of the firm. However, when I think about the physi... Read More
Complex Trading: Diluted s/out for preferred/convertibles?
Hi,
Will there be an explanation regarding getting diluted s/out when there are options, preferreds, and convertibles? How should we calculate these - is there a shortcut formula like the treasury option method? How are warrants related?
Hi,
Will there be an explanation regarding getting diluted s/out when there are options, preferreds, and convertibles? How should we calculate these - is there a shortcut formula like the treasury option method? How are warrants related?
Re: D&A is different on the I/S and CF, which to use ??
let's say beginning treasury stock is (409,449) and the company had a 275mm stock buy back at $9.26, the # of shares repurchased were 29.7mm. what would my ending treasury stock balance be for next year on B/S?
let's say beginning treasury stock is (409,449) and the company had a 275mm stock buy back at $9.26, the # of shares repurchased were 29.7mm. what would my ending treasury stock balance be for next year on B/S?
Do you include pension liability in firm value?
Full Question:
Do you include the effect of pension liability in firm value (enterprise value or equity value)?
Full Question:
Do you include the effect of pension liability in firm value (enterprise value or equity value)?
Re: Technology Sector Valuation
great thank you.
great thank you.
a quick question about formatting
Hi,
In your template, you use $ in front of numbers in the first and last line, and use underline for summation. How do you get/define these formats in a quick way? Any shortcut? Thanks.
Hi,
In your template, you use $ in front of numbers in the first and last line, and use underline for summation. How do you get/define these formats in a quick way? Any shortcut? Thanks.
How is the WACC - cost of debt affected by a tax benefit?
Full Question:
I have a question regarding cost of debt calculation. If a company has a tax benefit rather than the usual tax expense, then how is the after tax cost of debt calculated?
Full Question:
I have a question regarding cost of debt calculation. If a company has a tax benefit rather than the usual tax expense, then how is the after tax cost of debt calculated?
LBO "Super Complex Course"
Hi,
I purchased the quick and dirty LBO course, but am thinking about taking the complex course. Is it possible to upgrade, by paying $500 to get all the courses? I've already paid $250 for the quick and Dirty course.
Thank you
Greg
Hi,
I purchased the quick and dirty LBO course, but am thinking about taking the complex course. Is it possible to upgrade, by paying $500 to get all the courses? I've already paid $250 for the quick and Dirty course.
Thank you
Greg
Interest Schedule calcs
Upon calculating the int expense and income, I use the chooose function and arrive at the same answers as seen on the video. However, when the I feed the int expense in to the IS there is an ERROR, I tried checking off the iteration box but no luck. Strangely enough, however the int income when ent... Read More
Upon calculating the int expense and income, I use the chooose function and arrive at the same answers as seen on the video. However, when the I feed the int expense in to the IS there is an ERROR, I tried checking off the iteration box but no luck. Strangely enough, however the int income when ent... Read More
I am working on a quick and dirty LBO model for a large retail chain. I assumed 20% transaction premium, as well EBITDA and revenue multiples of 6.89x and 1.2x respectively. The actual multiples are 4.4 and 0.77. I have two questions: 1) Are my transaction multiples too high comparatively with the... I am working on a quick and dirty LBO model for a large retail chain. I assumed 20% transaction premium, as well EBITDA and revenue multiples of 6.89x and 1.2x respectively. The actual multiples are 4.4 and 0.77.
I have two questions:
1) Are my transaction multiples too high comparatively with the actuals. In other words, is there a range of "normalcy" pertaining to these?
2) My IRR in the first year comes out to be about 24%, which is significantly higher than the example model. In the second year, it goes up to 28% before starting to steadily decline. Is this also "normal" for the IRR to do that or can there be something wrong with my model? In the example, irr is about 13% in the first year and then 20%. I found that the actual transaction premium may be lower, about 10% and tried plugging that in, but then my IRR goes through the roof up to 50% in the first year. What can be wrong? Read More