Posts by: WST Expert 1
Re: Merger Modeling & LBO Modeling - FASB 141r
Transaction costs are now expensed. for simplicity, we treat it the same as tendor costs, that is, via Retained Earnings on the BS. If you want to be really correct, you would have a tax savings on that which we'd run through our NOL schedule. Ditto for tender costs, but it's so immaterial, we chose... Read More
Transaction costs are now expensed. for simplicity, we treat it the same as tendor costs, that is, via Retained Earnings on the BS. If you want to be really correct, you would have a tax savings on that which we'd run through our NOL schedule. Ditto for tender costs, but it's so immaterial, we chose... Read More
Re: Modeling Questions for Mature Company
You're quite welcome. We're glad you enjoyed.
Don't forget to contact us for a discount, especially if you're interested in multiple online packages.
You're quite welcome. We're glad you enjoyed.
Don't forget to contact us for a discount, especially if you're interested in multiple online packages.
RE: How do I create a long underline?
Install our free macros add-in in our FREE RESOURCES section. Under WST => Borders menu, Ctrl + Shift + A, but you must have pre-formatted the cell using our custom formatting first!
Install our free macros add-in in our FREE RESOURCES section. Under WST => Borders menu, Ctrl + Shift + A, but you must have pre-formatted the cell using our custom formatting first!
Re: Goodwill and Minority Interest for less than 100%
Who owns the remaining 20%? Is it still publicly traded? Assuming that Co. B is a subsidiary of Co. A, then Minority Interest is generally calculated as 20% (the percentage A does NOT own of B) of Co. B's book value. You would show 100% of the Goodwill created (since you have to consolidate everythi... Read More
Who owns the remaining 20%? Is it still publicly traded? Assuming that Co. B is a subsidiary of Co. A, then Minority Interest is generally calculated as 20% (the percentage A does NOT own of B) of Co. B's book value. You would show 100% of the Goodwill created (since you have to consolidate everythi... Read More
RE: How do I shade every 3rd row instead of alternate rows?
Fairly straight forward - the trick to all of this is simply figuring out the mathematical equation. Instead of this formula as instructed in class: =ROW()-EVEN(ROW()) Try this formula instead =MOD(ROW(),3)=0 MOD provides the remainder of a division equation and you are looking for every ... Read More
Fairly straight forward - the trick to all of this is simply figuring out the mathematical equation. Instead of this formula as instructed in class: =ROW()-EVEN(ROW()) Try this formula instead =MOD(ROW(),3)=0 MOD provides the remainder of a division equation and you are looking for every ... Read More
RE: AFM Core Model: Current Portion of LT Debt
Correct, the way you would adjust in the model is to remove CP changes from mandatory payments in row 11 or better yet, when calculating current portion of LTD, you would exclude CP and in changes to Debt, you would add a new CP change just like revolver. Keep in mind, we decided to treat CP like an... Read More
Correct, the way you would adjust in the model is to remove CP changes from mandatory payments in row 11 or better yet, when calculating current portion of LTD, you would exclude CP and in changes to Debt, you would add a new CP change just like revolver. Keep in mind, we decided to treat CP like an... Read More
Re: Why use average (industry) beta?
Our suggestion is to build three DCF's: 1) standalone ACQUIROR DCF as is 2) standalone DCF of the TARGET company WITHOUT synergies 3) then, as you mentioned, do a DCF of the COMBINED company WITH synergies For each, you would use an applicable WACC. 1) ACQUIROR standalone WACC 2) TARGET standalone... Read More
Our suggestion is to build three DCF's: 1) standalone ACQUIROR DCF as is 2) standalone DCF of the TARGET company WITHOUT synergies 3) then, as you mentioned, do a DCF of the COMBINED company WITH synergies For each, you would use an applicable WACC. 1) ACQUIROR standalone WACC 2) TARGET standalone... Read More
Re: Total debt when calculating enterprise value
If short-term obligations is short term debt (notes payable, commercial paper, etc), then yes, part of debt.
you need to check the footnote for the components.
for other liabilities, almost definitely not included as debt.
If short-term obligations is short term debt (notes payable, commercial paper, etc), then yes, part of debt.
you need to check the footnote for the components.
for other liabilities, almost definitely not included as debt.
Re: Historical Cash Flow statement
NEVER use historical BS and IS for historical CF statement creation. You MUST input directly from actual figures. If you look at most CF statements, i.e. Inventory changes in Working Capital section, you'll see that the CF number rarely matches the change in corresponding periods on the BS. This is ... Read More
NEVER use historical BS and IS for historical CF statement creation. You MUST input directly from actual figures. If you look at most CF statements, i.e. Inventory changes in Working Capital section, you'll see that the CF number rarely matches the change in corresponding periods on the BS. This is ... Read More
Keep in mind that commercial paper is split out separately. Our assumptiom says no change in CP- so no borrowing or paydown. However if there was a paydown, we would consider it as part of your required repayment. In reality there is a paydown of CP since it is short term debt for working capital pu... Keep in mind that commercial paper is split out separately. Our assumptiom says no change in CP- so no borrowing or paydown. However if there was a paydown, we would consider it as part of your required repayment. In reality there is a paydown of CP since it is short term debt for working capital purposes. In further reality, CP would act as our revolver in this case and in even greater reality, CP is almost always refinanced.
To answer your direct question - if you put in $100 of repayment each year for CP, you will still balance - it does get reclassified as current portion because that amount will physically get repaid in the next year (or refinanced in our specific model). Effectively because we are assuming no net change to repayments/borrowings of CP we are implicitly treating it as another long term debt item. Read More