Posts by: WST Expert 1
Re: Future lease payment
If the information is the same, then it is ok. We normally always cross reference to verify. Similar to extracting the future debt payments - it will often be in the Future Commitments and the Debt footnotes.
If the information is the same, then it is ok. We normally always cross reference to verify. Similar to extracting the future debt payments - it will often be in the Future Commitments and the Debt footnotes.
Re: Windows 8.1 set up?
We recently updated the tutorial file for Windows 8/8.1, which requires modification of the registry. Please refer to the last page of the PDF for detailed instructions. Be sure to back up your registry before making any changes, and follow the steps exactly as described.
We recently updated the tutorial file for Windows 8/8.1, which requires modification of the registry. Please refer to the last page of the PDF for detailed instructions. Be sure to back up your registry before making any changes, and follow the steps exactly as described.
Re: Acquisition of assets
Normally it is included. However if there is obsolete inventory, it can be excluded.
Normally it is included. However if there is obsolete inventory, it can be excluded.
Re: Capital Lease Discussion
1) Capital leases are treated as part of debt in credit ratios, as are the lease payments for both operating and capital leases. Refer to our in-class model on credit ratios 2) In a distressed situation, capital leases are typically cured and thus, no impairment. If yes impairment, then it falls ... Read More
1) Capital leases are treated as part of debt in credit ratios, as are the lease payments for both operating and capital leases. Refer to our in-class model on credit ratios 2) In a distressed situation, capital leases are typically cured and thus, no impairment. If yes impairment, then it falls ... Read More
Re: Minority interest included as debt
1) If the preferred stock is tax deductible then you treat it exactly as debt; that is, (1-T)(D/E + P/E). If prefs are not tax deductible then don't tax effect it; that is, (1-T)(D/E) + P/E
2) Cash is generally ignored when levering and unlevering betas
1) If the preferred stock is tax deductible then you treat it exactly as debt; that is, (1-T)(D/E + P/E). If prefs are not tax deductible then don't tax effect it; that is, (1-T)(D/E) + P/E
2) Cash is generally ignored when levering and unlevering betas
Re: Minority interest included as debt
Generally, for the purposes of levering and unlevering betas, you would not include Minority Interest (NCI) as part of the D/E portion. The reason is because the existence (or lack thereof) of MI does not impact Net Income, whereas altering D to E ratio would impact Net Income and therefore EPS and ... Read More
Generally, for the purposes of levering and unlevering betas, you would not include Minority Interest (NCI) as part of the D/E portion. The reason is because the existence (or lack thereof) of MI does not impact Net Income, whereas altering D to E ratio would impact Net Income and therefore EPS and ... Read More
Re: equity IRR
Actually not really. Dividends are physically cash pay as opposed to FCFE which is still accrual concept of accounting. If you truly dividend out the exact calculation of FCFE, then yes, they are the same.
Actually not really. Dividends are physically cash pay as opposed to FCFE which is still accrual concept of accounting. If you truly dividend out the exact calculation of FCFE, then yes, they are the same.
Re: equity IRR
No, FCFF and FCFE (horribly) are for valuation, not IRR calculations.
No, FCFF and FCFE (horribly) are for valuation, not IRR calculations.
Re: equity IRR
IRR is calculated based on actual cash flows (per financial model). FCFF is a valuation DCF metric, not for IRR. As such they are different concepts that are unrelated.
IRR is calculated based on actual cash flows (per financial model). FCFF is a valuation DCF metric, not for IRR. As such they are different concepts that are unrelated.
Since the off-balance sheet crude inventory financing is a required cash outflow for your project, yes, you must include that initial cash outflow in your IRR calculation. Otherwise, who will provide that capital to kick start the project? However, good news is that you should be able to model a ret... Since the off-balance sheet crude inventory financing is a required cash outflow for your project, yes, you must include that initial cash outflow in your IRR calculation. Otherwise, who will provide that capital to kick start the project? However, good news is that you should be able to model a return of that working capital financing BACK to you once you have reached run rate, unless it is always locked up - if that's the case, upon exit, you would receive that WC financing back, whether as end of greenfield project or upon sale, the buyer needs to replenish that initial capital base to keep operations running. Read More