Posts by: WST Expert 1

Re: Cost of Debt Sources
If the company has public debt, go to bloomberg and obtain their YTM.
if no public debt (or no debt), then you proxy using spreads per the other posting.
Sounds too much like you're trying to have someone else do your work for you.
Then, where's your value-add?
Go to post added 11 years ago
RE: Debt and Capex
Yes, your modifications will work fine. There can be unlimited possibilities to enhance any model - for instance, some people like to only take 50% of any positive cash flow and pay down debt and then dividend the remaining 50% (more relevant for LBOs). As long as you test your logic for yo... Read More
Go to post added 11 years ago
RE: Deferred Maintenance Revenue treatment for TEV
This is definitelty akin to deferred revenue and unearned revenue (ie magazine subscriptions). Thus, not to be part of TEV and so the same answer - don't add or subtract. In the case of a merger, we would normally treat this as a closing adjustment due to working capital - that is, the buyer req... Read More
Go to post added 11 years ago
Re: Cost of Debt Sources
ok, we'll let you slide on the laziness part!

We would recommend using bloomberg or comparable data source and set up a bloomberg download spreadsheet using BLP functions in which you grab each ticker's debt.
Go to post added 11 years ago
Re: Building models from scratch?
The Capstone model is a SIMPLE model that focuses and emphasizes on setting up a spreadsheet model from scratch. As you know, all of our modeling courses come with a blank template provided in which the formatting is pre-done, just the numbers are blanked out. As such, folks have asked for a module... Read More
Go to post added 11 years ago
RE: Is DCF a pre- or post-tax value?
Generally, dcf tv uses mkt multiples. You are valuing the company as opposed to selling it altho the premise is to value as if u r seeling (multiples) vs hold forever (perpetuity growth).

Dcf = 100% value. If minority valuation, while other world due to liquidity and minority discounts.
Go to post added 11 years ago
Re: Excel 2003 to Excel 2007
Absolutely! There are pros and cons to migration. Contact us separately for details and specifics.
Go to post added 11 years ago
Re: Employee Stock Purchase Plan
If the employees have purchased the stock, then yes, the shares would have been issued and as such, are part of Basic Shares Outstanding. Sometimes, firms issue "Restricted Shares" which are part of Diluted Shares Outstanding. If uncertain, your best bet is to view the EPS footnote that ... Read More
Go to post added 11 years ago
RE: WACC tax rate adjustment for bea
Wacc is meant to capture marginal cost of capital. Effective tax rate and marginal (statutory) rates are not the same!
Go to post added 11 years ago
RE: Merger Modeling Basics: 2005E vs 2004A
Not a dumb question! You are calculating accretion/dilution for 2005E and part of that includes synergies which we estimate using 2004A, the last known year of SG&A.
Go to post added 11 years ago