Posts by: Guest 1
Difference btwn $100 special dividend vs share repurchase
Full Question: As you know, a company can do a share repurchase, or a special dividend, when they're trying to return capital to shareholders on a standalone basis. Why is it that both a special dividend of $100 and a share repurchase of $100 of stock necessarily results in the same exact pro forma... Read More
Full Question: As you know, a company can do a share repurchase, or a special dividend, when they're trying to return capital to shareholders on a standalone basis. Why is it that both a special dividend of $100 and a share repurchase of $100 of stock necessarily results in the same exact pro forma... Read More
AFM Enhancements: Capitalization calculations
Hi there, I've got 2 doubts related to this module that you may be able to help me with: 1. Why our Total Capital calculation Line 18 does not include the Minority Interest figure? (once it is a source of capital as well) 2. Why are we considering the Capital Leases interest expense but not... Read More
Hi there, I've got 2 doubts related to this module that you may be able to help me with: 1. Why our Total Capital calculation Line 18 does not include the Minority Interest figure? (once it is a source of capital as well) 2. Why are we considering the Capital Leases interest expense but not... Read More
Re: Questions on basic Accretion/Dilution model
GW - OK Cash PE - I understand that just wanted to see how I can explain it to someone. I would say: in order to calculate the "break even" PE under a 100% cash deal assume Net Income is 1 and the Equity Value will EQUAL the PE ratio. Since you are funding the Equity Value all through cash... Read More
GW - OK Cash PE - I understand that just wanted to see how I can explain it to someone. I would say: in order to calculate the "break even" PE under a 100% cash deal assume Net Income is 1 and the Equity Value will EQUAL the PE ratio. Since you are funding the Equity Value all through cash... Read More
Vlookup Formula - Convert Text Input to Numerical Score
Dear WST, 1) How do I write a Vlookup formula to convert text input to numberica score with example as follows: High 10 Medium 5 Low 3 2) Per Hamilton Lin, we should avoid Nestedif statement at all cost. In the case above, is it easier to do a Nestedif statement, simple and str... Read More
Dear WST, 1) How do I write a Vlookup formula to convert text input to numberica score with example as follows: High 10 Medium 5 Low 3 2) Per Hamilton Lin, we should avoid Nestedif statement at all cost. In the case above, is it easier to do a Nestedif statement, simple and str... Read More
Re: Historical Cash Flow statement
Hi, yes recasting of financial statements are definitely recommended which would be required for forecasting. Additionally if you are trying to analyze historical balance sheet (say any specific trend or ratio) or you are trying to compare to a industry benchmark ratio, then standardization of finan... Read More
Hi, yes recasting of financial statements are definitely recommended which would be required for forecasting. Additionally if you are trying to analyze historical balance sheet (say any specific trend or ratio) or you are trying to compare to a industry benchmark ratio, then standardization of finan... Read More
Treatment of converts for TEV
Full Question: My question is about COSTCO's convertibles. I was familiar with "if converted method" to measure the potential dilutive effects of potential dilution from CFA curriculum. The explanation given in the lecture was quite different. In the video, it was explained that whenever the face v... Read More
Full Question: My question is about COSTCO's convertibles. I was familiar with "if converted method" to measure the potential dilutive effects of potential dilution from CFA curriculum. The explanation given in the lecture was quite different. In the video, it was explained that whenever the face v... Read More
Re: Core Model DCF - terminal cashflow
You're gonna have to give me more than this. Even if capex/depr cancel out (which would never happen unless you spend exactly the same capex money for exactly the same capex items for infinity) by taking EBIT at the end of the fifth year this massively overestimates the TV which is discounted at fac... Read More
You're gonna have to give me more than this. Even if capex/depr cancel out (which would never happen unless you spend exactly the same capex money for exactly the same capex items for infinity) by taking EBIT at the end of the fifth year this massively overestimates the TV which is discounted at fac... Read More
Modeling 'Names' used in IB/PE - Question
Hi Fellas! I have an empty background (education/experience) except in snow-shoveling..and when I read about Private Equity or Investment Banking, I come across the modeling subject and this one and only question- How many [types of] financial models do IB & PE firms use? I mean what analyst, ... Read More
Hi Fellas! I have an empty background (education/experience) except in snow-shoveling..and when I read about Private Equity or Investment Banking, I come across the modeling subject and this one and only question- How many [types of] financial models do IB & PE firms use? I mean what analyst, ... Read More
Capital leases - exclude vs include
Full Question: When COSTCO's debt is being calculated, long-term debt and current portion of long-term debt from latest 10Q are simply added. However, long-term debt includes capital leases and there was no adjustment for that. Is there a special reason for not deducting the capital leases in case ... Read More
Full Question: When COSTCO's debt is being calculated, long-term debt and current portion of long-term debt from latest 10Q are simply added. However, long-term debt includes capital leases and there was no adjustment for that. Is there a special reason for not deducting the capital leases in case ... Read More
I think the operating lease expenses may be categorized as non-operating expenses for arriving at operational efficiency ratios (if that what you want to calculate). Cash used to acquire equipments for operating leases cannot be capitalised as capex. The same will be shown as non current assets an... I think the operating lease expenses may be categorized as non-operating expenses for arriving at operational efficiency ratios (if that what you want to calculate).
Cash used to acquire equipments for operating leases cannot be capitalised as capex. The same will be shown as non current assets and accordingly cash will be expensed in the cashflow statement. Read More