Posts by: Guest 1
Re: Dividend payment for Debt Paydown
Makes perfect sense - thanks for the affirmation and further clarity!
Makes perfect sense - thanks for the affirmation and further clarity!
RE: AFM Core Model: Current Portion of LT Debt
Thanks for that. But I'll rephrase my question to make it clearer: by nature, CP is a short-term debt, as you also stressed above, so my point is that there is no sense in including the next year's mandatory repayment of CP in the calculation of the current portion of LT Debt (and that is exactly wh... Read More
Thanks for that. But I'll rephrase my question to make it clearer: by nature, CP is a short-term debt, as you also stressed above, so my point is that there is no sense in including the next year's mandatory repayment of CP in the calculation of the current portion of LT Debt (and that is exactly wh... Read More
Total debt when calculating enterprise value
When we calculate enterprise value, the total debt includes long term debt and current portion of long term debt. However, when looking at the SEC, there are "short-term obligations" and "other liabilities" under liabilities. My questions is, how do we determine what to include a... Read More
When we calculate enterprise value, the total debt includes long term debt and current portion of long term debt. However, when looking at the SEC, there are "short-term obligations" and "other liabilities" under liabilities. My questions is, how do we determine what to include a... Read More
Historical Cash Flow statement
What are the pros/cons with creating a historical CF statement using the historical balance sheet and income statements to calculate instead of plugging in the numbers directly from the financials?
What is considered best practice for historical analysis of the CF statement?
Thanks.
What are the pros/cons with creating a historical CF statement using the historical balance sheet and income statements to calculate instead of plugging in the numbers directly from the financials?
What is considered best practice for historical analysis of the CF statement?
Thanks.
Re: Goodwill and Minority Interest for less than 100%
But under the current FAS141, not considering the FAS141(R), we calculate the goodwill based on the proportion that we bought, hence the calculation $1,000,000 + $20,000 - [80% * ($500,000 - $100,000)]. And when we do this, we are only considering 80% of the existing goodwill (the $100,000 in the f... Read More
But under the current FAS141, not considering the FAS141(R), we calculate the goodwill based on the proportion that we bought, hence the calculation $1,000,000 + $20,000 - [80% * ($500,000 - $100,000)]. And when we do this, we are only considering 80% of the existing goodwill (the $100,000 in the f... Read More
AFM Core Model: Interest Schedule Video
Errata: At approximately 9 minutes into the "Interest Schedule" video explanation within Advanced Financial Modeling - Core Model, the instructor explains the inputs for the "Choose" function, and accidentally says and writes "take the END Tranche balance". This should be corrected to say "AVERAG... Read More
Errata: At approximately 9 minutes into the "Interest Schedule" video explanation within Advanced Financial Modeling - Core Model, the instructor explains the inputs for the "Choose" function, and accidentally says and writes "take the END Tranche balance". This should be corrected to say "AVERAG... Read More
Best way to set grey background for Mac
Hi, I'm using Microsoft Office 2011 in Mac to build a DCF model with WST template. However, the figures in previous years (fonts in white) cannot be shown properly because of the default white background. What is the best way to set grey background in spreadsheet with Mac? Thanks. Best Reg... Read More
Hi, I'm using Microsoft Office 2011 in Mac to build a DCF model with WST template. However, the figures in previous years (fonts in white) cannot be shown properly because of the default white background. What is the best way to set grey background in spreadsheet with Mac? Thanks. Best Reg... Read More
Re: Historical Cash Flow statement
I appreciate the prompt feedback. Understood on the Historical CF and reasons why the historical inputs are more accurate. In the spirit of remaining consistent, if we are making adjustments to the [historical and future] income statement to arrive at normalized income/earnings but then using the ... Read More
I appreciate the prompt feedback. Understood on the Historical CF and reasons why the historical inputs are more accurate. In the spirit of remaining consistent, if we are making adjustments to the [historical and future] income statement to arrive at normalized income/earnings but then using the ... Read More
AFM Core Model: Forecasting Minority Interest
How would you forecast Minority Interest for a projected period on the Income Statement (Well also the balance sheet but that's another question) for, say, 5 years? The problem is, of the consolidated subisidiaries, there are no financial statements for the subisiary operating companies (nor any ... Read More
How would you forecast Minority Interest for a projected period on the Income Statement (Well also the balance sheet but that's another question) for, say, 5 years? The problem is, of the consolidated subisidiaries, there are no financial statements for the subisiary operating companies (nor any ... Read More
Hi there, Let's assume the following example: Co.A has acquired 80% of Co.B for $1million in cash, and has incurred $20,000 in merger related costs. Co.B's net assets (100% book value) are $500,000, and for simplicity purposes let's assume fair value equals book value in this case. Co.B has an exis... Hi there,
Let's assume the following example: Co.A has acquired 80% of Co.B for $1million in cash, and has incurred $20,000 in merger related costs. Co.B's net assets (100% book value) are $500,000, and for simplicity purposes let's assume fair value equals book value in this case. Co.B has an existing Goodwill on its balance sheet of $100,000. Assuming we are not taking into account the FAS141R and IFRS#3(R), we would do the following when consolidating in relation to goodwiil and minority interest:
Goodwill = $1,000,000 + $20,000 - [80% * ($500,000 - $100,000)]
Minority interest = ($500,000 - $100,000) * 20% OR $500,000 * 20%? - So, essentially my doubt is: minority interest should be calculated on the same basis as goodwill, which means that we calculate the remaining portion (20%) over the identifiable net assets (net assets less target's existing goodwill) or calculated over the net assets directly (in this case $500,000)?
I tried that on the Complex LBO model and it does not balance if I simply calculate MI with net assets (without subtracting the target's existing goodwill)...
Also, shoud we blow out the target's existing goodwill EVERYTIME or not (I know when it's a 100% acquisition it doesn't matter, but in this case of 80% acquisition it seems that it matters)?
I appreciate your help on this matter.
Thanks in advance.
P.S: I have some of the questions I have posted on the forum over the past weeks in word documents here with me. So, in case you guys still need it just let me know and I can send the files through. Read More