Posts by: Joyce Y
Free Cash Flow to Equity
Would increase in debt (refinancing) in a year increase free cash flow to equity in that year?
Would increase in debt (refinancing) in a year increase free cash flow to equity in that year?
Re: Waterfall distribution IRR
"“Internal Rate of Return” or “IRR” means the annualized nominal discount rate which equates all Cash Inflows to Cash Outflows during each calendar quarter which shall be calculated using the XIRR and XNPV functions in Microsoft Excel. The Internal Rate of Return shall be based on the actua... Read More
"“Internal Rate of Return” or “IRR” means the annualized nominal discount rate which equates all Cash Inflows to Cash Outflows during each calendar quarter which shall be calculated using the XIRR and XNPV functions in Microsoft Excel. The Internal Rate of Return shall be based on the actua... Read More
Waterfall distribution IRR
I have recently came across a GP structure where the 2nd level waterfall distribution is based on XIRR. But it specifically states that the XIRR is not compounded. I thought inherent in the XIRR calculation is compounding effect. How to build a model that satisfies the non-compounding XIRR?
I have recently came across a GP structure where the 2nd level waterfall distribution is based on XIRR. But it specifically states that the XIRR is not compounded. I thought inherent in the XIRR calculation is compounding effect. How to build a model that satisfies the non-compounding XIRR?
Then in case of real estate investment, in a year of acquisition, the considerations would be considered as an increase in capex, while the corresponding financing would increase debt, the resulting negative FCFE would be the equity invested in the project?