### Posts by: WST Expert 1

**Re: Tax effects on cash flow**

Maybe or maybe not! Taxes are calculated including the impact of the deferral and as such, is not needed to be considered in this case. Incorporating the effect of deferred tax impact is beyond the scope of this exercise.

**Re: Zero coupon bond vs. non-interest bearing debt**

Zero coupon bonds still have an interest rate. They are typically sold at a discount and using regular bond math to calculate interest expense (and rate) means they are interest bearing. Separately, there is no cash outflow for the interest on the zero coupon until fill payment at maturity.

**Re: cant find Tool in Excel 2016**

Are you looking for the Tools -> Add-Ins window? If so, can you try pressing Alt, then T, then I?

This keyboard shortcut should pull it up. Let us know if that works.

**Re: bank's credit costs calculation**

Yes, you have the right idea. Just make sure to match time periods. Total Provisions is typically an Income Statement item and Total Loans is a Balance Sheet item.

**Re: Banks - Key CAMELS Ratio**

Hello, thank you for your queries. 1) PPOP, which we generically refer to as EBT (Earnings Before Taxes) is simply Revenue less ALL expenses excluding income taxes. If you wish to excluding Provision for Losses then simply take EBT and add back Provision for Credit Losses. We do not recommend usi... Read More

**Re: Return Column and Row Vales for the minimum value in the table**

Hello, there are a couple of ways to approach this, depending on how inflexible (or flexible) your table is to begin with. For now, we have a solution that only works if you're 100% sure that the minimum value appears exactly once. Open a blank workbook and enter your sample data. The numbers ... Read More

**Re: Excel Macro with error message - Please help**

Hi Ty, We got the Excel file that you emailed us earlier. We disabled the WST Macros add-in and the error still appeared. This looks like an issue with at least one formula that's causing issues. To me, it looks like cell H15 on the "Check" worksheet is the problem, because when I delete it, t... Read More

**Re: End of Year vs Beginning of Year**

Yes, that is correct! As explained earlier in the course (or another related course), the period ending Jan 2007 we are calling 2006 since 11 months of the 2006 are included. The reason why some retailers end their fiscal year in January as opposed to December is to account for the after-Christmas/H... Read More

**Re: Bank Financial Modeling**

Yes, our bank modeling courses, in particular, the Advanced version indeed is to determine profits/cash flow and intrinsic value based on forecasts of key inputs and drivers. The models are based on Basel II, not Basel III or CECL. Most, if not all of the inputs required to update to Basel III woul... Read More

Re: Provisioning IFRS 9

Expected credit losses are an input to the model. We base on historical trend absent internal asset level details. Therefore, assuming management is following the guidance, as they ought to be, then business as usual for modeling.