Posts by: WST Expert 1

Re: Merger modeling - Merger IS
To clarify item #2 below, EBITDA should not include Transaction Debt Financing Fees (see other question posted in this forum)
Go to post added 8 years ago
Re: IPO Valuation
In your context, the DCF value (TEV) would be post-money if your projections and cash flows include the effect of the IPO proceeds. Therefore, indeed it would e post-money valuation. Correct, the cash proceeds from the IPO would NOT be considered in this context, because the IPO cash proceeds would ... Read More
Go to post added 8 years ago
Re: Question on the model
1) Mandatory debt repayments reduce the amount of discretionary cash available - you would typically get this figure for the projection period from the footnotes for a listed company. 2) The more accurate AND precise interest calculations (both interest expense and interest income) is to use AVER... Read More
Go to post added 8 years ago
Re: LBO Model -LBO Summary 1 Option 7 Shares Outstanding Section Cell Number AA39 - Outstanding Amount at Strike price of $33.00
Hi Peter,

Apologies for that, you read it correctly. The 5.688 that you see in the video is a typo. The cell should absolutely contain 5.668 instead.
Go to post added 8 years ago
Re: Minority Interest
We are always trying to get value of COMMON equity, hence we want to remove all forms of capital other than equity. The only reason why MI shareholders participate in the ownership of assets on the BS as well as earnings on the IS is because of consolidation rules (no proportionate consolidation. M... Read More
Go to post added 8 years ago
Re: 10k Wallmart
Hi Nora, All exams for the Package 1 section are required. Specifically, these are: - Accounting Exam (Consumer) - How to Analyze a 10K Exam - How to Analyze a 10K Case Study Exam We apologize for at least one of the correct PDF files not being listed. They’ve since been updated – pl... Read More
Go to post added 8 years ago
Re: Macros Addin Excel 13
Hi Nora, if you're on Excel 2013, you should use the .xlam file (not the .xla file). Follow the installation instructions using the .xlam and let us know how it works.
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Re: FIFO vs. LIFO cash flow
Assuming a rising-price and increasing-inventory environment, a company using FIFO will generate lower COGS, and higher taxable income. Therefore, this FIFO company would pay more taxes (using cash) and thus have lower cash flow.
Go to post added 8 years ago
Re: Inventory costing method
Assuming zero taxes, Net Income will indeed start off differently, but changes in inventory (i.e. cash paid to suppliers) are a cash outflow, and thus will be one of the adjustment line items immediately below. Any “increase” in net income due to the inventory costing method will simply come bac... Read More
Go to post added 8 years ago
Re: Cash for Investment in exercise
That’s correct, apologies for the typos on the slide. In both these exercises, CFO increases, while CFI decreases.
Go to post added 8 years ago