Posts by: Guest 1
Quick cost of debt question
Hi, In the finance 101 vid, you mention that the cost of debt, in theory, is the incremental marginal borrowing rate - the more one borrows, the higher the risk and thus rate. But we must use the current yield to maturity as the next best answer because the marginal rate is impossible to predict.... Read More
Hi, In the finance 101 vid, you mention that the cost of debt, in theory, is the incremental marginal borrowing rate - the more one borrows, the higher the risk and thus rate. But we must use the current yield to maturity as the next best answer because the marginal rate is impossible to predict.... Read More
Free cash flow yield
I often see investors use price to free cash flow or free cash flow yield to gauge the attractiveness of a stock. Typically they use market price of the stock vs the FCF/share. However, this seems slightly apples-and-oranges to me, since the price is what the equity holders pay but the FCF is not st... Read More
I often see investors use price to free cash flow or free cash flow yield to gauge the attractiveness of a stock. Typically they use market price of the stock vs the FCF/share. However, this seems slightly apples-and-oranges to me, since the price is what the equity holders pay but the FCF is not st... Read More
Quick SGA question from basic accretion/dilution model
Hi, Some time ago I posted this question in the basic accretion dilution model. [quote:1sxzkh33]Hi, This might be a dumb question: Why are we using the 2005E for EPS, PE, and net income but SGA from 2004A? Posted: 10/8/2008 9:13:27 PM ========== Not a dumb question! You are calculating acc... Read More
Hi, Some time ago I posted this question in the basic accretion dilution model. [quote:1sxzkh33]Hi, This might be a dumb question: Why are we using the 2005E for EPS, PE, and net income but SGA from 2004A? Posted: 10/8/2008 9:13:27 PM ========== Not a dumb question! You are calculating acc... Read More
net debt and debt to total cpaital
Is the following the correct approach to calculate the following ratios?
Net Debt to Total Capital --> Net Debt/ SE + Net Debt
Debt to Total Capital --> Debt /SE+Total Debt
Is the following the correct approach to calculate the following ratios?
Net Debt to Total Capital --> Net Debt/ SE + Net Debt
Debt to Total Capital --> Debt /SE+Total Debt
How to Analyze a 10K: about the pension section
Hi, the instructor said there is a section that talks about the pension, I want to know where is it?
thanks
Hi, the instructor said there is a section that talks about the pension, I want to know where is it?
thanks
10 Unanswered complex LBO questions
Hi, I have several quick qualitative questions: 1. In the debt sweep, I would imagine that if we get new debt, that new debt would become labeled as next year's existing debt. But we seem to be treating new debt and existing debt as different tranches. Why is this? What's the point of calling ... Read More
Hi, I have several quick qualitative questions: 1. In the debt sweep, I would imagine that if we get new debt, that new debt would become labeled as next year's existing debt. But we seem to be treating new debt and existing debt as different tranches. Why is this? What's the point of calling ... Read More
Re: Free cash flow yield
So just to be clear then, are you agreeing that price to FCF is a bit apples-to-oranges? i.e. price paid by equity holders on a stream of CFs that only accounts for interest payment rather than principal payments seems inconsistent. It would seem that a "better" measure of "FCF yield&... Read More
So just to be clear then, are you agreeing that price to FCF is a bit apples-to-oranges? i.e. price paid by equity holders on a stream of CFs that only accounts for interest payment rather than principal payments seems inconsistent. It would seem that a "better" measure of "FCF yield&... Read More
Circular Reference Fix
Hello, I'm sure this topic has been discussed in the past, and I currently do not have access to the online self study videos. But, I wanted to know how to fix the circular reference problem when calculating interest expense as it feeds through the financial statements. Again, apologies for askin... Read More
Hello, I'm sure this topic has been discussed in the past, and I currently do not have access to the online self study videos. But, I wanted to know how to fix the circular reference problem when calculating interest expense as it feeds through the financial statements. Again, apologies for askin... Read More
Multiples & WACC class
Hi, (1). When calculating the D/E ratios for WACC, we are grabbing a “Total Debt” figure that includes M.I. (of course for the companies that have it). Don’t you think this is not appropriate and in some sense overstate the D/E ratio (forgetting about the relevance of the amounts and to be ... Read More
Hi, (1). When calculating the D/E ratios for WACC, we are grabbing a “Total Debt” figure that includes M.I. (of course for the companies that have it). Don’t you think this is not appropriate and in some sense overstate the D/E ratio (forgetting about the relevance of the amounts and to be ... Read More
Hi,
To my knowledge there are 5 major valuation models: DCF, public comps, deal comps, M&A, and LBO. For which of these, would be normalize the IS just as we did for public/deal comps? And why?