Posts by: Guest 1
RE: TEV and negative net debt clarification
That's what I thought. So why not use a logical if statement as the formula instead of overwriting the formula that is currently in the TEV cell?
That's what I thought. So why not use a logical if statement as the formula instead of overwriting the formula that is currently in the TEV cell?
Re: Core Model Enhancements - Tax Schedule
Thank you very much. I really appreciate your help!
Thank you very much. I really appreciate your help!
Insurance Company LBO Question
Full Question:
I am looking at the potential LBO of a small insurance company and have a question about how to model the transaction for purchase account purposes under GAAP and statutory accounting. Here are the assumptions:
Full Question:
I am looking at the potential LBO of a small insurance company and have a question about how to model the transaction for purchase account purposes under GAAP and statutory accounting. Here are the assumptions:
RE: Levered vs. unlevered beta for cost of equity
With respect to the use of FCFE, I would also normally avoid using it; however, would it make sense in a situation where a company is expecting to fund a substantial capex program with debt financing and use anticipated cash flows to pay it down quickly?
With respect to the use of FCFE, I would also normally avoid using it; however, would it make sense in a situation where a company is expecting to fund a substantial capex program with debt financing and use anticipated cash flows to pay it down quickly?
Corporate Valuation: capital lease
Hi About the capital lease, the instructor mentioned in the lecture, his view of capital lease is not very positive, it shows more debt, less efficient for the asset turnover ratios, however, capitalized also means future depreciation, you can get the tax deduction for the capital lease, perhaps ... Read More
Hi About the capital lease, the instructor mentioned in the lecture, his view of capital lease is not very positive, it shows more debt, less efficient for the asset turnover ratios, however, capitalized also means future depreciation, you can get the tax deduction for the capital lease, perhaps ... Read More
Re: WACC : Historical Beta Values
For cost of debt calculations the most widely used practice is to use the credit ratings to assign a credit premium over a risk free rate. which sources are used to get the values of premiums based on the credit ratings?
Is there any subjective analysis involved?
For cost of debt calculations the most widely used practice is to use the credit ratings to assign a credit premium over a risk free rate. which sources are used to get the values of premiums based on the credit ratings?
Is there any subjective analysis involved?
Re: Displaying Color Info
Thank you for always promptly answering my questions. Every time, your advice has steered me in the direction that led to a solution. It's appreciated!
Thank you for always promptly answering my questions. Every time, your advice has steered me in the direction that led to a solution. It's appreciated!
How to calculate / estimate transaction costs for an LBO?
Full Question: I am doing a LBO analysis of a small retailing company. The transaction EV is about $350 million and new equity is $100 (my number). What is the appropriate transaction cost for this analysis? You mentioned that the M&A fee was around 1-2% of TEV. But I am not sure about the lega... Read More
Full Question: I am doing a LBO analysis of a small retailing company. The transaction EV is about $350 million and new equity is $100 (my number). What is the appropriate transaction cost for this analysis? You mentioned that the M&A fee was around 1-2% of TEV. But I am not sure about the lega... Read More
RE: Deferred Acquisition Costs for Life Insurance Companies
Thanks, that's what I thought. Now, if I wanna use the BV multiple, it seems that I need to adjust the BV by the "deferred policy acquisition costs" and/or the "value of insurance purchased," since the amounts are sitting on the balance sheet as an asset. It would only seem to make sense to make t... Read More
Thanks, that's what I thought. Now, if I wanna use the BV multiple, it seems that I need to adjust the BV by the "deferred policy acquisition costs" and/or the "value of insurance purchased," since the amounts are sitting on the balance sheet as an asset. It would only seem to make sense to make t... Read More
Full Question:
In determining a total transaction value for an acquisition (Including the stock/cash offer, plus the assumption of long term liabilities and working capital), would all liabilities from the balance sheet be included?