Posts by: WST Guest A
Reserve column
Page 268: Cost Method: The dividend income received from ownership in another company, increases cash and equity. The table shows a column called "reserve" under which dividend income of $40,000 is shown. Is the column “Reserve” suppose to be Retained Earnings? Dividend income does not go throug... Read More
Page 268: Cost Method: The dividend income received from ownership in another company, increases cash and equity. The table shows a column called "reserve" under which dividend income of $40,000 is shown. Is the column “Reserve” suppose to be Retained Earnings? Dividend income does not go throug... Read More
Cash for Investment in exercise
Page 263, Solution Exercise 1 #2, says the deferral of development costs increased cash from operations by $4.71MM. Cash for Investments increased by the same amount. Shouldn't it say Cash for Investment decreased by same amount, not increase? Same with page 264, Solution Exercise 2 #3, shouldn't... Read More
Page 263, Solution Exercise 1 #2, says the deferral of development costs increased cash from operations by $4.71MM. Cash for Investments increased by the same amount. Shouldn't it say Cash for Investment decreased by same amount, not increase? Same with page 264, Solution Exercise 2 #3, shouldn't... Read More
FIFO vs. LIFO cash flow
Page 220: Why does the Cash Flow using FIFO is lower than the cash flow using LIFO, if Cash Flow from Operations starts with a larger Net Income number and Net Income is an after tax number?
Page 220: Why does the Cash Flow using FIFO is lower than the cash flow using LIFO, if Cash Flow from Operations starts with a larger Net Income number and Net Income is an after tax number?
Inventory costing method
Slide 219: The text in slide 219, says that in the absence of income taxes, there is no difference in cash flow by either inventory costing method. I understand that Cash Flow Statement is based on cash basis and the Income Statement is based on accrual basis but if by using different inventory ... Read More
Slide 219: The text in slide 219, says that in the absence of income taxes, there is no difference in cash flow by either inventory costing method. I understand that Cash Flow Statement is based on cash basis and the Income Statement is based on accrual basis but if by using different inventory ... Read More
1. Do merger of equals usually have premiums paid close to zero? 2. Page 41, to calculate Unlevered Free Cash Flow, it is used net capital expenditure, but to calculate Unlevered Free Cash Flow in the Hilb, Rogal & Hamilton case, it is used capital expenditure instead. Why? 3. When do you use... 1. Do merger of equals usually have premiums paid close to zero?
2. Page 41, to calculate Unlevered Free Cash Flow, it is used net capital expenditure, but to calculate Unlevered Free Cash Flow in the Hilb, Rogal & Hamilton case, it is used capital expenditure instead. Why?
3. When do you use beta and adjusted beta? In Module Finance 101, there is a reference to Beta for the CAPM calculation. But in the WalMart valuation exercise, Adjusted Beta is used instead of Beta.
4. Can you please explain again, why the WalMart DDM results are off compare to trading comps, DCF and WMT current?
5. In the Hilb, Rogal & Hamilton case, in the DCF Analysis excel sheet, can you please explain the labels formula, Cell B10 & A18? Read More