Posts by: WST Expert 1

Re: Undistributed Earnings Allocated to Participating Securities
This is the key line from your copy/paste: The shares of unvested restricted stock have the non-forfeitable right to receive dividends on an equal basis with other outstanding common stock. As such, the company has to remove the portion for the restricted stock and "carve it out" of net ... Read More
Go to post added 11 years ago
RE: Modeling out working capital
Normally with a derivation of the full balance sheet, yes, assets less laibilities. But 30/60 days expenses is not an uncommon estimate for cash flow based business (services firms) since you need to maintain that to pay salary, etc.
Go to post added 11 years ago
RE: All Stock M&A transaction...Timing Question
Usually, the actual exchange price is something like the average 3 to 10 trading days ending 3 to 10 days prior to the ACTUAL closing in the future. While we calculate premiums paid based on announcement date price and offer prices for our deal comps, the actual physical dollars are done based on th... Read More
Go to post added 11 years ago
Re: Cost of Debt Sources
you're not looking for cost of debt, but rather, current YTM. in either case, get bloomberg. public libraries, friends, be resourceful.
Go to post added 11 years ago
RE: How to project minority interest?
For a quick and dirty minority interest estimate on the balance sheet, you would take the proportionate share of what CME does NOT own and recognize that as the MI liability on the balance sheet. In other words, you would build a separate standalone model for the subsidiary (which is 100% consolidat... Read More
Go to post added 11 years ago
Re: Modeling ADR shares
You can build your entire model in BRL or local currency, which we'd actually recommend. Then once you come up with your DCF price target (in local currency), you would simply translate that into USD at today's exchange rate, spot price is fine. Keep in mind, this is ok because you are building you... Read More
Go to post added 11 years ago
RE: What if discretionary debt sweep is positive?
No, the formula stays the same. Never changes. The excess cash that is built is naturally captured through the cash flow statement. You do not want to pay down revolver past negative and no need to borrow either!
Go to post added 11 years ago
RE: LBO enhanced model question
Summary Page a) The Illustrative Valuation box is meant for information only. The real key is the Sources & Uses of Funds. The Illustrative Valuation should be a snapshot of the current valuation of the entire company (even if less than 100% purchase). b) You can hard code the Equity Contrib... Read More
Go to post added 11 years ago
Re: Complex Comps - SHLD - EPS before vs after acctng change
Yes, the idea is that accounting changes are considered one-time items that need to be normalized for comparison purposes. in that particular year, all retailers and real estate-related firms had to comply with that accounting changes for improvements, so while ALL firms had to do that change that y... Read More
Go to post added 11 years ago