Posts by: WST Expert 1
Re: Advanced bank financial modeling question
Great question. If we didn't cover it in the video, we apologize. Here is the source: 6/2/2009 $5BIL at $35.25, 142 MM shares http://investor.shareholder.com/jpmorga ... eID=3... Read More
Great question. If we didn't cover it in the video, we apologize. Here is the source: 6/2/2009 $5BIL at $35.25, 142 MM shares http://investor.shareholder.com/jpmorga ... eID=3... Read More
RE: Merger Modeling Basics: About the Cash balance on target
You are correct. In Target Cash Balance should NOT be added to PF Cash the way we calculated it. If the Target Cash Balance is to be added to PF Cash, then the Target's Total Debt should be refinanced NOT Net Debt. By using Net Debt we effectively assumed that Cash was used to pay down Target's Debt... Read More
You are correct. In Target Cash Balance should NOT be added to PF Cash the way we calculated it. If the Target Cash Balance is to be added to PF Cash, then the Target's Total Debt should be refinanced NOT Net Debt. By using Net Debt we effectively assumed that Cash was used to pay down Target's Debt... Read More
Re: Problem with choose and average formulas
Got it. Circular references should ONLY be created due to average balance. Take a look at our circular reference exhibit course, which is part of your online course logins at the bottom of your courses (Supplementary Exhibits). In our models, if you are on 1 for Beginning Balance, you should not ha... Read More
Got it. Circular references should ONLY be created due to average balance. Take a look at our circular reference exhibit course, which is part of your online course logins at the bottom of your courses (Supplementary Exhibits). In our models, if you are on 1 for Beginning Balance, you should not ha... Read More
Re: Master courses
Can you please advise me on which courses should I need to be master on for the investment banking job? I am changing a career, so investment banking is my new career and this is what I dream to do. Please help me and guide me to the right direction for investment banking career, and what should I... Read More
Can you please advise me on which courses should I need to be master on for the investment banking job? I am changing a career, so investment banking is my new career and this is what I dream to do. Please help me and guide me to the right direction for investment banking career, and what should I... Read More
Re: Estimated Taxes
We think your starting premise is wrong to begin with. Net Income is a GAAP number and as such reflects the full tax load (higher or lower, depending on NOL created or used). In other words, EBT is $1000. GAAP taxes is $400 (assume 40% for simplicity across the board). Net Income is therefore $600.... Read More
We think your starting premise is wrong to begin with. Net Income is a GAAP number and as such reflects the full tax load (higher or lower, depending on NOL created or used). In other words, EBT is $1000. GAAP taxes is $400 (assume 40% for simplicity across the board). Net Income is therefore $600.... Read More
Re: Software for Financial Analyst
Yes, someone will get back to you asap.
Yes, someone will get back to you asap.
RE: Leveraged Buyout Overview: About LBO Overview
1) Goodwill is usually created upon a change of control. For a greater than 50% stake but less than 100%, minority interest is created. So you model out the BS combination as if you own 100% of the target and then create minority interest which is essentially a pro-rata of the book value that is own... Read More
1) Goodwill is usually created upon a change of control. For a greater than 50% stake but less than 100%, minority interest is created. So you model out the BS combination as if you own 100% of the target and then create minority interest which is essentially a pro-rata of the book value that is own... Read More
We based the 6.0x capacity on currrent year not previous year! Since previous year usually has lower EBITDA, of course the ratio is higher!
Re: Estimated Taxes
No, per our previous response, GAAP taxes is $400. NI is $600. You are confusing GAAP accounting with Cash accounting. Deferred Taxes would be $400-$20=$380 $20 is "current portion" and assumed to be paid OUT IN CASH that year (or taxes payable up by $20, considered to be part of working ... Read More
No, per our previous response, GAAP taxes is $400. NI is $600. You are confusing GAAP accounting with Cash accounting. Deferred Taxes would be $400-$20=$380 $20 is "current portion" and assumed to be paid OUT IN CASH that year (or taxes payable up by $20, considered to be part of working ... Read More
IRR calcs page on LBO Enhanced Model
1) Yes, the first set of sponsor returns should - that is the reason we built the second block of returns. You are also correct in that any dividends must be properly split between the holders - however, we build that functionality in because normally, the sponsor will get all the dividends that are... Read More
1) Yes, the first set of sponsor returns should - that is the reason we built the second block of returns. You are also correct in that any dividends must be properly split between the holders - however, we build that functionality in because normally, the sponsor will get all the dividends that are... Read More
Thank you for your inquiry. 99% of the time, discrepancies are due to a typo. Please recheck the formula in your model. For instance, in your post, you said: =Choose($P$64,Q34,average(Q34,37))*$P$34 However, you are missing a Q in Q37 within the average formula. This of course has the effect of u... Thank you for your inquiry.
99% of the time, discrepancies are due to a typo.
Please recheck the formula in your model.
For instance, in your post, you said:
=Choose($P$64,Q34,average(Q34,37))*$P$34
However, you are missing a Q in Q37 within the average formula.
This of course has the effect of using the wrong $ amount when the switch is changed from a 1 to a 2.
Regarding your second inquiry with your Company X model - it might be the same issue.
Regarding your third inquiry about Year 4 of Company X, please confirm that you have the syntax correct (from comma to parenthesis) Read More