Posts by: WST Expert 1
RE: Corporate Valuation: capital lease
Please view our forums on capital leases at www.wallst-training.com/forum
Please view our forums on capital leases at www.wallst-training.com/forum
Re: Capitalizing vs Expensing Interest
the offsetting entries would be deferred taxes. remember, the sum of expensing (interest expense) and capitalization (interest + depreciation) must be all the same at the end. so, how it's allocated in the interim years is irrelevant as long as they all add up. taxes are paid based on cash revenue a... Read More
the offsetting entries would be deferred taxes. remember, the sum of expensing (interest expense) and capitalization (interest + depreciation) must be all the same at the end. so, how it's allocated in the interim years is irrelevant as long as they all add up. taxes are paid based on cash revenue a... Read More
Re: Options Exerciseable versus Outstanding - Complex LBO
In short, in-the-money (ITM) means there is value in the option. if the strike price is $30 and the current stock price is $40, there is $10 of value (not considering Black Scholes or full option valuation models). If the current stock price is $20, then the option is out-of-the-money (OTM) and thus... Read More
In short, in-the-money (ITM) means there is value in the option. if the strike price is $30 and the current stock price is $40, there is $10 of value (not considering Black Scholes or full option valuation models). If the current stock price is $20, then the option is out-of-the-money (OTM) and thus... Read More
RE: Purchase Price - Net Tangible Book Value
Other Intangibles can be either (Equity Purchase Price - Existing Goodwill) * %age allocation to Other Intangibles OR Equity Purchase Price * %age allocation as long as your end numbers make sense. In short, there is no precise way other than a detailed build-up so how you get there doesn't matter, ... Read More
Other Intangibles can be either (Equity Purchase Price - Existing Goodwill) * %age allocation to Other Intangibles OR Equity Purchase Price * %age allocation as long as your end numbers make sense. In short, there is no precise way other than a detailed build-up so how you get there doesn't matter, ... Read More
RE: 338(h)(10) elections and NOLs
338(h)(10) can be elected by any corporate form. Buyer can be anything (C-Corp, S-Corp, etc) and Seller as well. Obviously 338(h)(10) works best if the Seller is a passthru entity or make use of NOL, etc. If the Buyer had to be S-corp or other passthru, then that removes the advantages of a 338(h)(1... Read More
338(h)(10) can be elected by any corporate form. Buyer can be anything (C-Corp, S-Corp, etc) and Seller as well. Obviously 338(h)(10) works best if the Seller is a passthru entity or make use of NOL, etc. If the Buyer had to be S-corp or other passthru, then that removes the advantages of a 338(h)(1... Read More
RE: WACC question
great question! the convention is to use the target's wacc b/c you are figuring out the standalone target's run-rate, going-concern valuation and thus, that does not involve the acquiror at all, even if you are doing the DCF in an acquisition context. in reality, you will sensitize your DCF analysis... Read More
great question! the convention is to use the target's wacc b/c you are figuring out the standalone target's run-rate, going-concern valuation and thus, that does not involve the acquiror at all, even if you are doing the DCF in an acquisition context. in reality, you will sensitize your DCF analysis... Read More
RE: Negative Goodwill
Correct - however if you do a trx adj on IS you need a tax schedule to be completely accurate. We didn't cover this in the videos since it was beyond the scope and relatively immaterial but you have the right idea.
Correct - however if you do a trx adj on IS you need a tax schedule to be completely accurate. We didn't cover this in the videos since it was beyond the scope and relatively immaterial but you have the right idea.
Re: Capitalizing vs Expensing Interest
No.
the cash flow in EACH period is always the same - that's the point of the accounting bootcamp class that Dean Fred Choi hones in.
the variation from time period to time period is offset by any taxes
No.
the cash flow in EACH period is always the same - that's the point of the accounting bootcamp class that Dean Fred Choi hones in.
the variation from time period to time period is offset by any taxes
RE: LBO enhanced model question
The pro forma is now proforma 6/30/08. You would keep estimated 2008 still as you still have 6 months in the year. Hence you need a last 6 months (2H 08 is the label) for IS and CF and Debt. You can make all of 2008 2nd half only, thus ending up with a 4.5 year projection model. Or add a brand new... Read More
The pro forma is now proforma 6/30/08. You would keep estimated 2008 still as you still have 6 months in the year. Hence you need a last 6 months (2H 08 is the label) for IS and CF and Debt. You can make all of 2008 2nd half only, thus ending up with a 4.5 year projection model. Or add a brand new... Read More
So to clarify, in Sheet 1: the block of cells NAME is hard coded the LEGEND is also hard coded and matches the order of NAME and then you assign your LETTER to it then in Sheet 2: the LETTER is the output to display based on the order of NAME try this: go to your LEGEND, Sheet 1, cells 11 t... So to clarify, in Sheet 1:
the block of cells NAME is hard coded
the LEGEND is also hard coded and matches the order of NAME and then you assign your LETTER to it
then in Sheet 2:
the LETTER is the output to display based on the order of NAME
try this: go to your LEGEND, Sheet 1, cells 11 to 16 and cell reference to A2.
the manual labor that you obviously cannot avoid is to update the corresponding letters in column B to complete your legend.
now when you update A2:A7, then A11: A16 updates automatically and again, you cannot escape updating column B since this is your output you (randomly) want.
then in Sheet 2 cell A2, put this formula in:
=VLOOKUP(Sheet1!A2,Sheet1!$A$11:$B$16,2,0)
and copy paste down. Read More