Posts by: WST Expert 1
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.
Re: equity IRR
1) IRR question: As with any IRR calculation, your "Year 0" equity investment (equity injection) is your initial cash outflow. If this were a company (structure as an asset acquisition), your terminal value would be the Equity Value of your ownership stake in the company. Interim cash flows would b... Read More
1) IRR question: As with any IRR calculation, your "Year 0" equity investment (equity injection) is your initial cash outflow. If this were a company (structure as an asset acquisition), your terminal value would be the Equity Value of your ownership stake in the company. Interim cash flows would b... Read More
Re: making cash flow statement and debt sweep into a quarterly model
Generally, when building quarterly projections, we do not need or project out the annual debt sweep. Everything on the debt sweep is quarterly, as such, you don't have to worry about the fiscal year end number. Q4 Cash Before Discretionary should definitely not be the same as the fiscal year end ... Read More
Generally, when building quarterly projections, we do not need or project out the annual debt sweep. Everything on the debt sweep is quarterly, as such, you don't have to worry about the fiscal year end number. Q4 Cash Before Discretionary should definitely not be the same as the fiscal year end ... Read More
Re: Capital Lease Discussion
Easiest way to think about it is like this: When you buy a company, you are NOT buying out the existing leases; i.e. the rent on HQ is not being paid in advance at the time of sale. As such, you wouldn't add Operating Leases as a form of debt to TEV nor to Sources & Uses of Funds in a transaction (... Read More
Easiest way to think about it is like this: When you buy a company, you are NOT buying out the existing leases; i.e. the rent on HQ is not being paid in advance at the time of sale. As such, you wouldn't add Operating Leases as a form of debt to TEV nor to Sources & Uses of Funds in a transaction (... Read More
Re: TGT Debt for ROC
At the 14:30 mark (thru 14:40), the instructor inputs 753+9119 = 9872 for debt. Indeed at the 35:50 mark, the instructor accidentally inputs 8872 in the denominator when it should have been 9872, for a correct ROC of 11.9%
At the 14:30 mark (thru 14:40), the instructor inputs 753+9119 = 9872 for debt. Indeed at the 35:50 mark, the instructor accidentally inputs 8872 in the denominator when it should have been 9872, for a correct ROC of 11.9%
Re: Other types of hedge funds
There are also: Market Neutral, Global Macro, Distressed, and many more.
There are also: Market Neutral, Global Macro, Distressed, and many more.
Re: Comparable companies analysis
Please refer to the discussion in your previous post on "Equity value derived from DCF". Based on the phrasing of your question here, we would consider the market cap to be pre-money since it presumably is based on current EPS / Net Income and doesn't incorporate the new money (again, see previous p... Read More
Please refer to the discussion in your previous post on "Equity value derived from DCF". Based on the phrasing of your question here, we would consider the market cap to be pre-money since it presumably is based on current EPS / Net Income and doesn't incorporate the new money (again, see previous p... Read More
Re: Equity value derived from DCF
The answer depends on how the IPO is being structured. If the IPO is only going public to allow existing shareholders an exit, then the IPO offer size is simply replacing existing shareholders and therefore, pre-money and post-money equity value are the same. If part or all of the IPO is to inject n... Read More
The answer depends on how the IPO is being structured. If the IPO is only going public to allow existing shareholders an exit, then the IPO offer size is simply replacing existing shareholders and therefore, pre-money and post-money equity value are the same. If part or all of the IPO is to inject n... Read More
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.