Posts by: Guest 1
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
Dividend payment for Debt Paydown
In the int-Adv model (and this is the case for the AdvFM Model as well, why do we build the Cash Available Before Debt calculation to include a dividend payout when, in theory, dividends have the last priority to payouts. Shouldn't the debt sweep sweep through first and then we decide if dividends a... Read More
In the int-Adv model (and this is the case for the AdvFM Model as well, why do we build the Cash Available Before Debt calculation to include a dividend payout when, in theory, dividends have the last priority to payouts. Shouldn't the debt sweep sweep through first and then we decide if dividends a... Read More
Re: Inventory Writedown
ah thank you for the confirmation. I manually adjusted the formula in Inventory to capture it. Thank you very much!
ah thank you for the confirmation. I manually adjusted the formula in Inventory to capture it. Thank you very much!
AFM Core Model: mandatory debt payment for commercial paper
Hi, why in the model , we don't have model out the mandatory payments for commercial paper? in cell i28, why the number is zero?
Hi, why in the model , we don't have model out the mandatory payments for commercial paper? in cell i28, why the number is zero?
Financial Modeling - Enhancements Part 2
Hi - I am having a little trouble understanding how Goodwill impairment is treated in the GAAP financial statements. I am under the impression that if there is an impairment, the impairment is deducted from Operating Income to arrive at the GAAP Pre-Tax Income. Is my understanding correct? If yes, t... Read More
Hi - I am having a little trouble understanding how Goodwill impairment is treated in the GAAP financial statements. I am under the impression that if there is an impairment, the impairment is deducted from Operating Income to arrive at the GAAP Pre-Tax Income. Is my understanding correct? If yes, t... Read More
Modeling Questions for Mature Company
Hello, I have a few questions for modeling a mature company relative to the model Hamilton showed us for GT a few weeks ago. Please feel free to answer these one at a time or all together, which ever is earier. 1) I’m modeling a company (Medtronics) which has consistent commercial paper borrow... Read More
Hello, I have a few questions for modeling a mature company relative to the model Hamilton showed us for GT a few weeks ago. Please feel free to answer these one at a time or all together, which ever is earier. 1) I’m modeling a company (Medtronics) which has consistent commercial paper borrow... Read More
Financial Modeling - Enchancements Part 2
Hamilton explains at the end of the video how to integrate the Tax Schedule file with the financial model developed in Part 1. I had a query regarding this, while integrating the Tax Schedule with the model, where does one obtain the Ending NOL figure (if any) in cell F23 from (this was hard coded f... Read More
Hamilton explains at the end of the video how to integrate the Tax Schedule file with the financial model developed in Part 1. I had a query regarding this, while integrating the Tax Schedule with the model, where does one obtain the Ending NOL figure (if any) in cell F23 from (this was hard coded f... Read More
AFM Core Model: Current Portion of LT Debt
Hi, in the "Current Portion of LT Debt" calculation we are considering next year's Mandatory Repayment (line 11). However, if we look at the Mandatory Repayment formula it also includes the Commercial Paper paydown, and the same mandatory repayment cell (line 11) is used to determine the "Current Po... Read More
Hi, in the "Current Portion of LT Debt" calculation we are considering next year's Mandatory Repayment (line 11). However, if we look at the Mandatory Repayment formula it also includes the Commercial Paper paydown, and the same mandatory repayment cell (line 11) is used to determine the "Current Po... 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... 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 what could be wrong?
What if we add a mandatory payment in commercial paper.In cell I42 should we add any mandatory payments the commercial paper has? Read More