Posts by: Guest 1| Wall St. Training

Emerging Markets
During the LBO class discussion, it wasn't clear to me what the recommended treatment for adjustment for valuing an emerging market company. Are you saying to use not the US risk free rate and therefore adjust for the country specific rate, adjust the market risk premium, or adjust to the total numb... Read More

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by Guest 1.

added 11 years ago

Clear Content Shortcut or VBA script?
I wonder if there is any shortcut key for the "clear content" function. If not, is there any VBA script that I can use to make it an add-in?

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by Guest 1.

added 11 years ago

Cost Accounting vs Equity Accounting
What is the difference between Cost method Accounting Investment and Equity method Accounting Investment?

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by Guest 1.

added 11 years ago

Re: Interest Schedule calcs
I'm not sure if this is the culprit, but here's what I found:

_(* #,##0_);_(* (#,##0);_(* " -"?_);_(@_)

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by Guest 1.

added 11 years ago

Cash Circular
Ok, here's the test of lifetime support. I have seen the videos (sometimes twice). I have read *everything* on circular references. I have checked that my income expense is keying off of my ending debt values (this company has no debt) and that it has a negative sign. I have similarly checked intere... Read More

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by Guest 1.

added 11 years ago

What is the difference, if any between book tax vs GAAP tax?
Full Question: A company XYZ has a different book tax versus cash tax. How does that impact their FCF? And if they tell you that their book tax is 25% vs cash tax is 15%, how do you adjust for it in the FCF statements and analysis? Also, what is the difference, if any, between book tax vs GAAP tax?... Read More

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by Guest 1.

added 11 years ago

Replacement cost and earning power
I'm looking an industrial company and is required to value the company using their replacement cost to see how much the earning is generated, using that as a benchmark to value another company's on that basis to see its justified multiples. however, i'm not sure how i can get to the replacement cos... Read More

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by Guest 1.

added 11 years ago

toggle formula in cell display
Hi, i accidentally hit some stroke and now one of my row only shows formula (ie =a16*b5) instead of the calculated result. how can i change that. thx

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by Guest 1.

added 11 years ago

How to value a company if we do or don't invest?
Full Question: We are using DCF to value an existing equity investment. The company is planning a capital increase two years down the road. We may or may not participate in the capital increase. My question is how should value our existing equity investment under these two scenarios (whether we ... Read More

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by Guest 1.

added 11 years ago

stock trading
Here's a question that was posed to us: "in my financial markets class, we have a mock trading competition going on, and whomever wins at the end of the semester (70 or so days) will get a 10% increase in total points for the semester, which could potentially boost the grade up a letter. i, obviousl... Here's a question that was posed to us: "in my financial markets class, we have a mock trading competition going on, and whomever wins at the end of the semester (70 or so days) will get a 10% increase in total points for the semester, which could potentially boost the grade up a letter. i, obviously, really want to win; how do you suggest i go about this / what should i be looking at research-wise?"

our short answer:

If you aren't following the mkt each day, this is tough if not impossible to teach since your actions and selections now will affect the end portfolio value. In short, Identify the sectors that you think will outperform the market. Your goal isn't to maximize your profits but to beat the rest of the class. So considering what's going on now in the mkt, read up on interent, WSJ etc on what industries will do the best in this craphole of an economy. Then, within that sector, pick the best companies. The way to win is to totally pick specific stocks and not diversify. However the risks are obvious. If you don't pick the right stocks you really lose.

For instance, things to think about:
- traditionally in good times, small cap stocks do well as they usually play into niche areas. In bad times, small caps don't do well because no one is buying and they have less room for buffer since they don't have as much economies of scale
- clearly the banking sector is hurt right now. No one is immune but if you think there are a couple outliers, then pick them
- oil & gas: as oil prices go up, integrated oils like exxonmobil do well, refineries like valero don't. As oil goes up, airlines suufer. Opposite is true. So take a stance on oil prices. Read up on full implications and make a decision
- retailers - discounters like wmt do well now, as does costco. But then costco got hurt more than wmt since costco had less room to quickly raise prices whereas wmt is able to control prices more but costco has a lot of private label (kirkland) so when costs up, they couldn't pass along as quickly
- since you are now literally living thru history, and the bailout hasn't passed yet, ask, who will benefit most when it does pass? Make the bet
- think global economics and the balance of payments and interest rate parity. As the US needs to issue more debt in future for bailout and other reasons, the $ will likely continue to depreciate. So pick companies with lots of international exposure. However, its relative to europe and asia - if they suffer more than US, then dollar will appreciate, if not, then reverse
- you probably can't short else you can do lots of stuff. Pick the opposite and short them to magnify returns

Final assessment: research all the different trends and relationships. Identify what you believe will happen and go from there. This is what portfolio mgrs do and takes yrs to perfect. Welcome to finance. Read More

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by Guest 1.

added 11 years ago