Posts by: WST Expert 1
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
WST Free Lifetime Support Guarantee - HOW IT WORKS
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
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
WST Forum Instructions
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
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
Re: a question about circular references
For financial models that seek to assume consistent assumptions about the mgmt's share buyback plans, you can guestimate the $ volume of share repurchases each year based on information provided and explained in the Advanced Financial Modeling - Core Model class. However, that doesn't speak anything... Read More
For financial models that seek to assume consistent assumptions about the mgmt's share buyback plans, you can guestimate the $ volume of share repurchases each year based on information provided and explained in the Advanced Financial Modeling - Core Model class. However, that doesn't speak anything... Read More
Re: Software for Financial Analyst
This would depend on the type of financial analyst. Please clarify which department/function you are referring to. Assuming you are referring to investment banking, equity research, private equity-type functions, the answer is, of course, Excel. All of our financial modeling training courses are do... Read More
This would depend on the type of financial analyst. Please clarify which department/function you are referring to. Assuming you are referring to investment banking, equity research, private equity-type functions, the answer is, of course, Excel. All of our financial modeling training courses are do... Read More
Re: Distressed Debt Model
The idea is that you want to argue to the judge what happens when the valuation is incorrect - you are unjustly enriching certain parties. The two key drivers of fulcrum are post-petition valuation and post-petition leverage, both of which impact recovery rates of the senior securities in the capita... Read More
The idea is that you want to argue to the judge what happens when the valuation is incorrect - you are unjustly enriching certain parties. The two key drivers of fulcrum are post-petition valuation and post-petition leverage, both of which impact recovery rates of the senior securities in the capita... Read More
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!