Posts by: WST Expert 1

Re: Modeling 'Names' used in IB/PE - Question
Hi, Thanks for submitting your question. Generally speaking, it's more useful and practical to know how things work, not just their names! That said, the various types of models you'll encounter in finance are usually aptly named, and all are just that: models. Like you said, a valuation model can... Read More
Go to post added 11 years ago
RE: AFM Enhancements: Football Field PDF
Please see updated template file with the conditional formatting filled in for the credit ratios. You can view the conditional formatting statement for each cell by going to FORMAT=>CONDITIONAL FORMATTING. For more information on the basics of Conditional Formatting, see our Advanced Excel for D... Read More
Go to post added 11 years ago
Re: LBO of a public company
The #1 most common reason why models don't balance: Items on the BS that change from year to year aren't properly reflected on the CFS. TASK: confirm that EVERY BS account is correctly linked to the CFS TIP: confirm that you shouldn't be accidentally subtracting or adding the wrong way (i.e. dividen... Read More
Go to post added 11 years ago
Re: Distressed Credit Overview - Valuation questions
1) Capital Structure a) Bank debt usually falls on the top box, Senior Debt (Revolver and Term Loans) b) Senior Debt can be secured OR unsecured. Nothing to do with SPV at all. Correct, Senior Debt usually does include bank debt and not usually bonds, especially the way we are listing it here. 2) V... Read More
Go to post added 11 years ago
Re: Urgent: Automating Scorecard Metrics grading
Do feel free to spread the word and we'll even hook you and your friends with discount codes.
Email us at: info@wallst-training.com
Go to post added 11 years ago
RE: Complex Trading Comps Analysis Treatment of gross profit
No we have not incorrectly stated TGT's Gross Profit. The traditional accounting definition of Gross Profit is Total Revenue less COGS. But forgetting about accounting definition for a second, intuitively, COGS is a raw material. The raw materials for Credit Card Revenues is Interest Expense; hence,... Read More
Go to post added 11 years ago
Re: Questions on basic Accretion/Dilution model
We think Hamilton's explanation in the M&A Deal Structuring video is easier - if you understand Stock PE breakeven (which you do), then just understand that opportunity cost can be expressed as either a ratio or a funding cost.
Go to post added 11 years ago
Re: Dividend decision before debt amortization
yes, normally, a cash flow sweep would be built to determine %age of excess cash goes to paying down debt first (i.e. discretionary payments on term loan and revolver) and then to equity dividends.
Go to post added 11 years ago
Re: Growth Initiatives Bolt On
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Go to post added 11 years ago
Re: M&A Cash Purchase Question
If the company is using cash from its balance sheet, then the accounting procedure would be simple in the M&A model by adjusting the cash with assets being purchased (depending upon which method of acquisition accounting is being used - equity method or consolidated method)....If the company is ... Read More
Go to post added 11 years ago