Posts by: WST Expert 1
Re: videos
Under the My Courses section, look for the "Wall Street Certification Bundle" Package. When you click on it, you should see it expand to display multiple courses. For example: "Accounting & Financial Statement Integration (WSCB)" Click on this course, and the gray box on the right should updat... Read More
Under the My Courses section, look for the "Wall Street Certification Bundle" Package. When you click on it, you should see it expand to display multiple courses. For example: "Accounting & Financial Statement Integration (WSCB)" Click on this course, and the gray box on the right should updat... Read More
Re: Prepaid Rent & Selling of Assets
1) Prepaid expenses = Cash DOWN and prepaid assets UP At month-end closing entry, the amount of the prepaid asset that is used up in the period: Expenses UP and prepaid assets DOWN 2) If you sell a machine for $10K and its book value (net PPE) is $8.5K, then you will report a gain on the IS of ... Read More
1) Prepaid expenses = Cash DOWN and prepaid assets UP At month-end closing entry, the amount of the prepaid asset that is used up in the period: Expenses UP and prepaid assets DOWN 2) If you sell a machine for $10K and its book value (net PPE) is $8.5K, then you will report a gain on the IS of ... Read More
Re: TGT Debt for ROC
The correct calculation of ROC for TGT is:
=(2,408+463) / (9,872+14,205) = 11.9%
We're not sure where you're getting 8872?
The correct calculation of ROC for TGT is:
=(2,408+463) / (9,872+14,205) = 11.9%
We're not sure where you're getting 8872?
Re: Material non-public information
Unfortunately, we will have to defer to securities lawyers. Usually, the regulators and the courts will look at everything in context and we wouldn't be in a position to speculate. The short answer to everything is that you are not allowed to trade or act on the information and the journalist would ... Read More
Unfortunately, we will have to defer to securities lawyers. Usually, the regulators and the courts will look at everything in context and we wouldn't be in a position to speculate. The short answer to everything is that you are not allowed to trade or act on the information and the journalist would ... Read More
Re: Straight Line Instead of Effective Interest?
Straight line approach is fine.
Straight line approach is fine.
Re: Bonds Issued at a discount
Thank you for pointing out the discrepancy. In this case, please rely on the video as the slides are not correct. Correct slide (in the videos) should have been presented as: Semi-annual interest payment: Interest Expense* 36,815 Cash 30,000 Bond disco... Read More
Thank you for pointing out the discrepancy. In this case, please rely on the video as the slides are not correct. Correct slide (in the videos) should have been presented as: Semi-annual interest payment: Interest Expense* 36,815 Cash 30,000 Bond disco... Read More
Re: Marketable Securities
1) Trading: Slide 202: Unrealized gains or losses are reflected in income (i.e. on the IS) AFS: Slide 204: Unrealized gains or losses are reflected as part of OCI (i.e. NO IS impact) HTM: no impact until sold since not marked to market Neither have a CF statement impact unless actual interest r... Read More
1) Trading: Slide 202: Unrealized gains or losses are reflected in income (i.e. on the IS) AFS: Slide 204: Unrealized gains or losses are reflected as part of OCI (i.e. NO IS impact) HTM: no impact until sold since not marked to market Neither have a CF statement impact unless actual interest r... Read More
Re: 2005A EBIT
EBIT figures should be pulling in from Adjusted EBIT (not unadjusted EBIT). I.E. the LTM figures from the template should be calculated off Adjusted EBIT, which is exactly what the template already does. Keep in mind Costco has an Aug year end vs Jan year end, and thus requires a separate calculat... Read More
EBIT figures should be pulling in from Adjusted EBIT (not unadjusted EBIT). I.E. the LTM figures from the template should be calculated off Adjusted EBIT, which is exactly what the template already does. Keep in mind Costco has an Aug year end vs Jan year end, and thus requires a separate calculat... Read More
Re: Capitalization of interest
Capitalized interest generally applies when you have a construction loan for building a real asset, such a factory or building. Accounting rules stipulate that the interest on such a construction loan is NOT accounted for as interest expense, but rather, as part of the cost basis. For instance, a on... Read More
Capitalized interest generally applies when you have a construction loan for building a real asset, such a factory or building. Accounting rules stipulate that the interest on such a construction loan is NOT accounted for as interest expense, but rather, as part of the cost basis. For instance, a on... Read More
1) Strict interpretation of fundamental concepts of CAPM state that the risk free rate should always be the UST (i.e. 10 year UST or 20 year UST bootstrapped from the 10- and 30-year UST). A sovereign spread should be added in the market risk premium portion of CAPM to account for the country specif... 1) Strict interpretation of fundamental concepts of CAPM state that the risk free rate should always be the UST (i.e. 10 year UST or 20 year UST bootstrapped from the 10- and 30-year UST). A sovereign spread should be added in the market risk premium portion of CAPM to account for the country specific premium (i.e. Korea in your example). The exchange it will be listed on (HK) and the reporting currency are irrelevant to the concept of CAPM. For full explanation of why these are the case, this is covered thoroughly in our Private Company Valuation Course, which discusses the international context.
2) If there are enough peers in the same region and /or same exchange, you definitely want to focus on those comparable. However, for large significant competitors that are global (and not in the same region or exchange), these should always be included in your comps as well. Read More