Posts by: WST Expert 1
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
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
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
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
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.
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.
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.
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.
Re: Growth Initiatives Bolt On
We apologize for the inconvenience. Please re-login or hit refresh and the chapter called "Future Growth" should now be visible.
We have corrected an error on the system that temporarily disabled viewing of that section of the course.
Thank you.
We apologize for the inconvenience. Please re-login or hit refresh and the chapter called "Future Growth" should now be visible.
We have corrected an error on the system that temporarily disabled viewing of that section of the course.
Thank you.
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
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
RE: Complex Trading Comps Analysis: Additional TGT adjustments
The $7MM expense for amounts to retired executives is a normal, ordinary and recurring expense and thus, not to be adjusted out. Even though we don't want execs to be retiring every year, you cannot simply adjust out everything => this is indeed a normal part of business and not non-recurring. It... Read More
The $7MM expense for amounts to retired executives is a normal, ordinary and recurring expense and thus, not to be adjusted out. Even though we don't want execs to be retiring every year, you cannot simply adjust out everything => this is indeed a normal part of business and not non-recurring. It... Read More
Re: Core Model DCF - terminal cashflow
Sorry, to clarify, it is supposed to be Tax-Effected EBIT not just EBIT.
Sorry, to clarify, it is supposed to be Tax-Effected EBIT not just EBIT.
Re: Ability to Pay Analysis
This analysis doesn't require the Acquiror's information. Think back to your other set of accretion/diultion q&a. You want to calculate the point at which the additional target net income added is offset by the interest expense paid to fund the deal (in cash which is funded via debt borrowings o... Read More
This analysis doesn't require the Acquiror's information. Think back to your other set of accretion/diultion q&a. You want to calculate the point at which the additional target net income added is offset by the interest expense paid to fund the deal (in cash which is funded via debt borrowings o... Read More
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... 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) Valuation
a) In a pure liquidation, correct. However, as the videos stated (or should have stated), the market is discounting the Senior Debt since the company is distressed and there is still value to the Subordinated Debt AND the Sub Debt is presumably receiving interest payments, so there's still value to the Sub Debt.
3) Liquidation
slide 29 category = slide 36 category
a) Senior Secured Debt = Secured Bank
b) Senior Debt/Bank Debt = Secured Bank
c) Unsecured Debt = Bond Claims
d) Subordinated Debt = Bond Claims
e) Mezzanine/Pref/Equity = Bond Claims / Old Equity
b) that's the case precedence set by US bankruptcy cases. if you think about it though, it *sorta* makes sense.
Bank Debt = specific contract that has been entered into whereas
Trade Claims are more like a promise to pay
Secured Assets (per the slide) are usually cured and re-instated back to pre-petition status, so other than annoyance factor, *mostly* made whole (other than expectations like executory contracts, as discussed in slides/videos) Read More