Posts by: WST Expert 1

RE: Amortizing debt out month by month vs annually
You could - but since we built an annual model, we use annual numbers. If you want to get extremely technical and precise, you would model that out, but since this isn't an LBO where you need extremely precise numbers, the additional precision gained isn't worth it, since it would only translate to ... Read More
Go to post added 10 years ago
Re: dollar sign to "R"
Thank you for your inquiry and we are most happy to hear you learned from our courses. In reference to our custom WST macros, Ctrl+Shift+D, it will provide the default currency on your computer. If you are seeing $, most likely your computer setting is set to US region. If you change your region set... Read More
Go to post added 10 years ago
RE: Forecasting working capital off future quarters' sales?
Your logic isn't a bad one - to base days outstanding off future forecasted quarterly sales. However, you will find that if you do that, you will create circular references. Any difference between using same quarter vs future quarter sales will be minimal unless you are a huge growth company. The ad... Read More
Go to post added 10 years ago
RE: Quick & Dirty Basic LBO: transaction enterprise value
Yes, you are clear. The $750 we assumed in the model was an assumption of the minimum level of cash we require. You would arrive at this figure when you build your full standalone projection model in the Debt Sweep calculation (i.e. our Advanced Financial Modeling - Core Model course). So if you ass... Read More
Go to post added 10 years ago
Re: revolver
The revoler is meant to balance the entire model and replicate what happens in the real world, from a corporate finance point of view. Any shortfalls that year is picked up by the revolver. Please see our Circular Reference and Excel Iterations free online videos at www.wstselfstudy.com for a fuller explanation. Read More
Go to post added 10 years ago
Re: Tax rate in WACC
Generrally, for a US-based company with mostly US-domiciled income, you can assume 35-40% marginal rate. Go to the tax footnote to see a breakdown of tax rates and you can confirm this.
Go to post added 10 years ago
RE: Convert an annual model into a quarterly tracking model
If you are actively tracking an industry as a research analyst, it is absolutely critical to maintain a "tracking model" in which you update quarterly results. your model must be flexible enough to handle the periodic updates from the company. regardless of the cyclicality of the business (which in ... Read More
Go to post added 10 years ago
Re: MERGER Debt Sweep
You would be correct. The revolver should be picked up first and then any excess cash AFTER that, would be used to prepay term loans, if any. Your correction to the formula is correct. Also, another note, we have determined that the first part of the formula, the entire IF part can be omitted. Only... Read More
Go to post added 10 years ago
Re: Balancing the Core Model
The Balance Sheet must always balance! Formula Asset = Liabilities + Equity, so think of it this way, you have a house, that house is an asset worth $100,000, if you get a mortgage of $80,000 (the debt), the remaining $20,000 has to go where? Well that belongs to you, which is in the form of equity.... Read More
Go to post added 10 years ago
Re: Insurance financial modeling
[quote="Theferrariboy":t1efjuct]During the course on CapEx depreciation, the video got stuck somehow. I couldn't watch it on my computer. Could you therefore please post the formulas for: - CapEx depreciation (CF rows 41-46) - PPE & Intangibles (BS row 23) - Depreciation & Amortiz... Read More
Go to post added 10 years ago