Posts by: WST Expert 1
Re: Cash Circular
Please confirm if our suggestion worked.
Please confirm if our suggestion worked.
Re: Cash Circular
It doesn't count if you're on the first floor or have a balcony right underneath you! However, in all seriousness, we do not advocate jumping out of windows. So, we've got good news and bad news for you. Which do you want first? Always the bad of course. Bad news is that one can have a circula... Read More
It doesn't count if you're on the first floor or have a balcony right underneath you! However, in all seriousness, we do not advocate jumping out of windows. So, we've got good news and bad news for you. Which do you want first? Always the bad of course. Bad news is that one can have a circula... Read More
Re: Beginning Cash Balance
Well, to be fair, we specifically say do not copy/paste or download from data vendors such as CapIQ, FactSet or Bloomberg because of these issues.
But glad you finally found the issue!
Well, to be fair, we specifically say do not copy/paste or download from data vendors such as CapIQ, FactSet or Bloomberg because of these issues.
But glad you finally found the issue!
Re: Beginning Cash Balance
Change in Cash is CFO + CFI + CFF. Thus, when you calc Ending Cash Balance, you include Beg + Cash to get End. The Debt sweep starting point calculations you noted essentially say to use any ""excess cash"" above the minimum to pay for any debt mandatory payments or any shortfalls of cash that y... Read More
Change in Cash is CFO + CFI + CFF. Thus, when you calc Ending Cash Balance, you include Beg + Cash to get End. The Debt sweep starting point calculations you noted essentially say to use any ""excess cash"" above the minimum to pay for any debt mandatory payments or any shortfalls of cash that y... Read More
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Wall St. Training (WST) offers FREE lifetime support to all our customers, including former corporate training clients, public, open-enrollment seminars, online self-study (WSTSS) customers and individual clients. Our free lifetime support is intended to provide a resource to the WST community an... Read More
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Welcome! Wall St. Training provides financial modeling and investment banking training to major bulge bracket investment banks, equity research firms, commercial banks, private equity firms, asset managers and other similar firms. WST Self-Study contains 95% of all our courses in an online, vide... Read More
RE: What is the rationale for using PIKs in a LBO transaction?
In an LBO transaction, if the Company has insufficient cash they may have the ability to utilize a PIK instrument (payment-in-kind). Essentially, PIKs defer cash interest payments to the future. The downside to PIKs is that interest accretes and compounds over time, which increases the overall inter... Read More
In an LBO transaction, if the Company has insufficient cash they may have the ability to utilize a PIK instrument (payment-in-kind). Essentially, PIKs defer cash interest payments to the future. The downside to PIKs is that interest accretes and compounds over time, which increases the overall inter... Read More
RE: Complex LBO: mandatory repayment relink
That is correct, thank you for pointing it out. The actual mechanism would be as follows: 1) Copy Tranche 1 and Tranche 2 mandatory debt repayment amounts (Tranche 2 is zeroes) onto the cells above the Beginning Balance for both. Make sure that these cells, which are the hard coded cells, ar... Read More
That is correct, thank you for pointing it out. The actual mechanism would be as follows: 1) Copy Tranche 1 and Tranche 2 mandatory debt repayment amounts (Tranche 2 is zeroes) onto the cells above the Beginning Balance for both. Make sure that these cells, which are the hard coded cells, ar... Read More
Re: Implied P/E of debt
Ratios and multiples are simply inverses of each other. When discounting $100 by 10% over one year, one normally does $100/1.1 = $90.909091 However, old school finance teaches you to use PV factors, or $100 x 0.909091 = same result. The PV factor is derived by taking 1/1.1 which is the same mathemat... Read More
Ratios and multiples are simply inverses of each other. When discounting $100 by 10% over one year, one normally does $100/1.1 = $90.909091 However, old school finance teaches you to use PV factors, or $100 x 0.909091 = same result. The PV factor is derived by taking 1/1.1 which is the same mathemat... Read More
Check to see if you have anything on the BS that is referencing interest income. Could be that you "double counted" the interest income somewhere on the BS, on the asset side (since assets > liabilities). Otherwise, check to see that the Cash Flow Statement doesn't also do the same. Remember the ... Check to see if you have anything on the BS that is referencing interest income. Could be that you "double counted" the interest income somewhere on the BS, on the asset side (since assets > liabilities). Otherwise, check to see that the Cash Flow Statement doesn't also do the same.
Remember the golden rule: everything on the BS must have a corresponding entry on the CF statement. So if you're not balanced it usually means that you have something moving on the BS that isn't reflected on CF statement. In this case, it sounds the reverse: you might have accidentally included interest income on the CF statement when it's already included in Net Income and thus on the BS via Retained Earnings as well CFO of course. Alternately, you might have accidentally deducted interest income somewhere on the BS in Liabilities or Equity side since your assets exceed liabilities. Read More