Posts by: Guest 1
WACC - preferred debt tax deductibility & levered beta
Full Question: 1) Your Corporate Valuation Methodologies course states that Unlevered beta = (levered beta/ (1+(1-Tax rate)x(debt/equity+preferred/equity) - why the denomintors are equity not TEV? 2) The Company Profiles module says assume preferred stock is not tax-deductible which is different ... Read More
Full Question: 1) Your Corporate Valuation Methodologies course states that Unlevered beta = (levered beta/ (1+(1-Tax rate)x(debt/equity+preferred/equity) - why the denomintors are equity not TEV? 2) The Company Profiles module says assume preferred stock is not tax-deductible which is different ... Read More
Re: Urgent: Automating Scorecard Metrics grading
Thank you so much! WST is the best!
Thank you so much! WST is the best!
Re: Manufacturer With Captive Finance Co.
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... 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... Read More
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
Hi, I have come across several individuals who have graduated without having an exposure to financial industry (typically been working in the IT domain) and are looking forward to switch to equity research/ analyst roles with financial services industries. Here CFA gives an adequate platform to le... Hi,
I have come across several individuals who have graduated without having an exposure to financial industry (typically been working in the IT domain) and are looking forward to switch to equity research/ analyst roles with financial services industries. Here CFA gives an adequate platform to learn about diverse fields of finance and improves credentials of a candidate. In a scenario when doing a full-time MBA is not possible, CFA would provide an apt opportunity to enter the financial services industries. Read More