Posts by: Guest 1
AFM Core Model: pay down down with all excess cash
how do you model in paying down the debt with all excess cash?
how do you model in paying down the debt with all excess cash?
Why use average (industry) beta?
Hi, I watched the complex trading course as well as the finance 101 and corporate valuation course, yet I still have a question regarding the WACC calculation of the complex trading comps: Why do we use the average un-levered beta of the industry rather than WMT’s specific beta? I understand why ... Read More
Hi, I watched the complex trading course as well as the finance 101 and corporate valuation course, yet I still have a question regarding the WACC calculation of the complex trading comps: Why do we use the average un-levered beta of the industry rather than WMT’s specific beta? I understand why ... Read More
Completed Model: Advanced Bank Model
Hello, I took the advanced bank modeling course. I had a few problems in building out my model while watching the videos and am wondering if anybody has a complete model that I can review to see where I made my errors (aka: balance sheet not balancing). Also, I am attempting to modify this model to ... Read More
Hello, I took the advanced bank modeling course. I had a few problems in building out my model while watching the videos and am wondering if anybody has a complete model that I can review to see where I made my errors (aka: balance sheet not balancing). Also, I am attempting to modify this model to ... Read More
RE: Tax rate
So, as per I could understand the 40% tax rate was an assumption based on the verified normalized effective tax rate for discount retailers, is that right?
Tks.
So, as per I could understand the 40% tax rate was an assumption based on the verified normalized effective tax rate for discount retailers, is that right?
Tks.
Stock issued: calculated off Equity Value or EV?
I noticed that the calculation for stock issued in an M&A deal differs in your Simple Merger Model vs the Int-Adv Model. Why in the simple merger model do you calculate stock issued based on EV whereas in the Int-Adv Merger Model with PEP and TAP you calculate it based off the equity value?
I noticed that the calculation for stock issued in an M&A deal differs in your Simple Merger Model vs the Int-Adv Model. Why in the simple merger model do you calculate stock issued based on EV whereas in the Int-Adv Merger Model with PEP and TAP you calculate it based off the equity value?
Re: Inventory Writedown
I have one more question in regards to this. I have a balanced model right now, however when I put in 100 of writedowns on my I/S, my inventories do not fall by 100. I followed the steps to perform on the IS and CF but am a bit unsure about the B/S. Currently before any inventory writedown featur... Read More
I have one more question in regards to this. I have a balanced model right now, however when I put in 100 of writedowns on my I/S, my inventories do not fall by 100. I followed the steps to perform on the IS and CF but am a bit unsure about the B/S. Currently before any inventory writedown featur... Read More
AFM Core Model: CPLTDs
I tried to see what woul;d happen if in the model we added another tranche of debt with extra CPLTD. It seems that the ending balance of Long Term Debt comes out wrong ( a negative number). I have tried anything i could come up with but i haven't found the proper solution. Dou you have any idea wha... Read More
I tried to see what woul;d happen if in the model we added another tranche of debt with extra CPLTD. It seems that the ending balance of Long Term Debt comes out wrong ( a negative number). I have tried anything i could come up with but i haven't found the proper solution. Dou you have any idea wha... Read More
Re: Why use average (industry) beta?
Hi, thank you for the explanation, that makes it quite clear. If you don't mind, please let me ask this follow on question regarding WACC for a stand-alone valuation: Let's say I want to make a DCF of a listed smaller Biotech company to determine if this company would be a good candidate for an acq... Read More
Hi, thank you for the explanation, that makes it quite clear. If you don't mind, please let me ask this follow on question regarding WACC for a stand-alone valuation: Let's say I want to make a DCF of a listed smaller Biotech company to determine if this company would be a good candidate for an acq... Read More
LBO Modeling Enhancements - Dividend Capture for IRR
Hi - I noticed that Row 55 (Common Dividends Received) in the IRR tab was designed to capture dividends into the IRR calculation. However the way the LBO Summary Sheet is set up, I don't see how any dividends can actually flow into this model when the basic outstanding shares are blown away in Row 4... Read More
Hi - I noticed that Row 55 (Common Dividends Received) in the IRR tab was designed to capture dividends into the IRR calculation. However the way the LBO Summary Sheet is set up, I don't see how any dividends can actually flow into this model when the basic outstanding shares are blown away in Row 4... Read More
Hello, I'm trying to understand why in an M&A transaction, we are only acquiring the equity portion of a company? For example, if your target company is worth EV of 100, Equity=500, Debt=700 and Cash =200. Why are we not buying the company at 1000 as opposed to a (usual) premium over equity v... Hello,
I'm trying to understand why in an M&A transaction, we are only acquiring the equity portion of a company? For example, if your target company is worth EV of 100, Equity=500, Debt=700 and Cash =200. Why are we not buying the company at 1000 as opposed to a (usual) premium over equity value? Is this b/c in a transaction, the debt gets blown out and refinanced so the acquirer will be bearing the burden of the new debt? As for the cash portion, what is the logic behind not paying for the cash? Is it b/c it's not an operating asset? Can you please explain? Thank you.
EY Read More