Posts by: WST Expert 1
Re: WST Add-in
The latest version of our WST Macros add-in can be found under My Courses -> WST Self-Study Instructions -> Excel Setup Tutorial. In the gray box on the right listing the chapters/assets, look for the yellow icon indicating the ZIP file. Click to download, then extract the files somewhere on your... Read More
The latest version of our WST Macros add-in can be found under My Courses -> WST Self-Study Instructions -> Excel Setup Tutorial. In the gray box on the right listing the chapters/assets, look for the yellow icon indicating the ZIP file. Click to download, then extract the files somewhere on your... Read More
Re: Cell Format
The number of decimal points shown by default (when using the number formatting macros) has changed over the years, as we've updated the Excel add-in. However, you can customize it to your liking via the shortcuts to show/hide one more/fewer decimal place. In the WST Macros menu/ribbon, select "W... Read More
The number of decimal points shown by default (when using the number formatting macros) has changed over the years, as we've updated the Excel add-in. However, you can customize it to your liking via the shortcuts to show/hide one more/fewer decimal place. In the WST Macros menu/ribbon, select "W... Read More
Re: Warrants
Companies typically issue warrants as part of debt securities. This is meant to provide an "equity kicker", to increase the potential return to investors. Warrants do typically have a premium strike price over current price to align economic interests.
Companies typically issue warrants as part of debt securities. This is meant to provide an "equity kicker", to increase the potential return to investors. Warrants do typically have a premium strike price over current price to align economic interests.
Re: Treatment of Change in DAC in IS
DAC is a REDUCTION of expenses because of matching principle of accounting. Total commissions is calculated off the entire premium amount, of which a portion of that is not earned. Therefore, you have to REDUCE the commission expense associated with the unearned premium portion.
DAC is a REDUCTION of expenses because of matching principle of accounting. Total commissions is calculated off the entire premium amount, of which a portion of that is not earned. Therefore, you have to REDUCE the commission expense associated with the unearned premium portion.
Re: Overview of the Financial Markets
Wealth Management, while not as directly related to the markets as some other functions, could be considered very similar to the Asset Management side. For instance, WM comprises a substantial portion of demand for securities such as stocks, whether they're individual companies or sectors. Their cli... Read More
Wealth Management, while not as directly related to the markets as some other functions, could be considered very similar to the Asset Management side. For instance, WM comprises a substantial portion of demand for securities such as stocks, whether they're individual companies or sectors. Their cli... Read More
Re: Incorporating maintenance capex into free cash flow calc
What is the context? We do not encourage use of TEV/EBITDA-CapEx). Plain and simple, companies do not trade off that multiple. To answer your direct questions given our view as stated: 1) Yes, CapEx includes ALL CapEx in DCF 2) See our view above 3) D&A is a proxy for TOTAL CapEx ONLY for sl... Read More
What is the context? We do not encourage use of TEV/EBITDA-CapEx). Plain and simple, companies do not trade off that multiple. To answer your direct questions given our view as stated: 1) Yes, CapEx includes ALL CapEx in DCF 2) See our view above 3) D&A is a proxy for TOTAL CapEx ONLY for sl... Read More
Re: Stock rights offering
Rights shares are simply the ability to purchase shares at a discounted price. Once those rights expire (or more specifically, once the eligible shareholders are determined), they become ex-rights and as such price drops because theres was value there that is now defined and removed. So in essence, ... Read More
Rights shares are simply the ability to purchase shares at a discounted price. Once those rights expire (or more specifically, once the eligible shareholders are determined), they become ex-rights and as such price drops because theres was value there that is now defined and removed. So in essence, ... Read More
Re: capital lease in TEV
We would exclude capital leases from TEV calculations in vast majority of cases. Nuances are explained in the Private Company Valuation and Valuation Nuances course - so don't leave those exceptions out! In the cases of excluding capital leases from TEV, EBITDA does not need to be further adjuste... Read More
We would exclude capital leases from TEV calculations in vast majority of cases. Nuances are explained in the Private Company Valuation and Valuation Nuances course - so don't leave those exceptions out! In the cases of excluding capital leases from TEV, EBITDA does not need to be further adjuste... Read More
Re: Questions on the slides (8 questions)
1a) Typically you can find the marginal tax rate in the footnotes. 1b) MNC with various tax jurisdictions typically do get a bit complicated, but for companies such as Starbucks, which are based in the USA, and would likely issue debt in the USA and also trade on USA stock exchanges, we would use t... Read More
1a) Typically you can find the marginal tax rate in the footnotes. 1b) MNC with various tax jurisdictions typically do get a bit complicated, but for companies such as Starbucks, which are based in the USA, and would likely issue debt in the USA and also trade on USA stock exchanges, we would use t... Read More
That represents the older formatting practices on previous versions of the WST Macros add-in. In recent years we've updated it to reflect more modern preferences. If you're submitting a pre-work assignment, you won't be penalized for having your formatting different from the one in the videos, as... That represents the older formatting practices on previous versions of the WST Macros add-in. In recent years we've updated it to reflect more modern preferences.
If you're submitting a pre-work assignment, you won't be penalized for having your formatting different from the one in the videos, as long as you used the correct shortcuts to get there. Read More