Posts by: WST Expert 1
RE: Adding in additional debt sweep logic
To do it properly, you would model in the revolver still. Then the senior debt piece looks at the cash availability + revolver. Then the seller note looks at cash availability + revolver+senior. We cover this in great detail in our complex lbo modeling and super-advanced merger modeling courses ... Read More
To do it properly, you would model in the revolver still. Then the senior debt piece looks at the cash availability + revolver. Then the seller note looks at cash availability + revolver+senior. We cover this in great detail in our complex lbo modeling and super-advanced merger modeling courses ... Read More
Re: Wal-Mart Self Study Share repurchase
Great question and you are correct. We should have allocated a portion of any stock issuances and buybacks to common stock. Forgot not that common stock is par value and par value is kept as low as possible for various tax and legal reasons, and the remainder is APIC. Thus, to be 100% accurate and c... Read More
Great question and you are correct. We should have allocated a portion of any stock issuances and buybacks to common stock. Forgot not that common stock is par value and par value is kept as low as possible for various tax and legal reasons, and the remainder is APIC. Thus, to be 100% accurate and c... Read More
Re: Automatically Importing Formatted Data
1a) you can export from Access to XLS (or copy paste as you did) 1b) if exporting or copying to a clean new, this isn't an issue; if on a pre-existing Excel file, then no, absent macros. 2a) absent macro, no. you can however, simply select the data, hit tab until your ACTIVE cell is selecting the c... Read More
1a) you can export from Access to XLS (or copy paste as you did) 1b) if exporting or copying to a clean new, this isn't an issue; if on a pre-existing Excel file, then no, absent macros. 2a) absent macro, no. you can however, simply select the data, hit tab until your ACTIVE cell is selecting the c... Read More
Re: 338h10 Election and pro forma balance sheet
A DTL would be created due to FMV step-up of Tangible Assets (if any). Aside from that extra adjustment, for tax purposes, a DTL or DTA would not be created since the entire amount above book value is considered Goodwill which is then tax deductible in future years. The book value portion of course,... Read More
A DTL would be created due to FMV step-up of Tangible Assets (if any). Aside from that extra adjustment, for tax purposes, a DTL or DTA would not be created since the entire amount above book value is considered Goodwill which is then tax deductible in future years. The book value portion of course,... Read More
RE: Balance Sheet doesn't balance
The most common issue is adding balance sheet items that change and aren't added to the cash flow statement (working capital).
The most common issue is adding balance sheet items that change and aren't added to the cash flow statement (working capital).
RE: Corporate Valuation Methodologies: about the case study
1) The different diluted shares outstanding are calculated using a cumulative method of all your option tranches, something that is not in the scope of the courses unfortunately (nor that important honestly). 2) Tax shield on preferred is applicable IF the interest on preferred is tax deductible... Read More
1) The different diluted shares outstanding are calculated using a cumulative method of all your option tranches, something that is not in the scope of the courses unfortunately (nor that important honestly). 2) Tax shield on preferred is applicable IF the interest on preferred is tax deductible... Read More
Re: Excel Macros
You would have to write all of your VBA code for your macro and then use a special code to initiate the shortcut key upon the macro loading. It's actually a series of three different steps that are required. 1) Create a macro with the actual code (see below) 2) Have the macro load once the add-in i... Read More
You would have to write all of your VBA code for your macro and then use a special code to initiate the shortcut key upon the macro loading. It's actually a series of three different steps that are required. 1) Create a macro with the actual code (see below) 2) Have the macro load once the add-in i... Read More
Re: Thoughts after going through package3 (advanced modeling)
Thank you for your thoughts! 1) Actually, depreciation is projected and calculated on a standalone basis and then ALLOCATED to COGS and SG&A based on usage of the assets. Thus, on the IS, as you noted, depreciation is included as part of COGS and SG&A but only after the depreciation figure i... Read More
Thank you for your thoughts! 1) Actually, depreciation is projected and calculated on a standalone basis and then ALLOCATED to COGS and SG&A based on usage of the assets. Thus, on the IS, as you noted, depreciation is included as part of COGS and SG&A but only after the depreciation figure i... Read More
Re: Custom fonts for Chart Y Axis.
Unfortunately, based on what we understand, this cannot be done in Excel. Basically, only one "condition" is allowed in the axis formatting.
Unfortunately, based on what we understand, this cannot be done in Excel. Basically, only one "condition" is allowed in the axis formatting.
Yes, this is covered in our Basic Financial Modeling class when we first introduced DCF. In a nutshell, in the long-run, for a slow growth, mature, stable cash cow, CapEx and Depreciation offset each other over time. If using perpetuity growth method for terminal value, this concept should apply (e... Yes, this is covered in our Basic Financial Modeling class when we first introduced DCF.
In a nutshell, in the long-run, for a slow growth, mature, stable cash cow, CapEx and Depreciation offset each other over time.
If using perpetuity growth method for terminal value, this concept should apply (else don't use this method for valuation since not applicable).
Hence, if using theory (perpetual growth), then use theory all the way, which means CapEx and Depr together are (should be) roughly zero.
Working Capital changes should be minimal differences, although somewhere else in our forums we have a robust discussion vs. the concepts in Copeland's blue book on valuation. Read More