Excel / PPT
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What is F4?
What is the difference between the share count on Pg 1 of a 10K or 10Q vs the share count used to calculate EPS?
The share count used for EPS is based on the weighted average share count over the course of the financial period.
How do you calculate UFCF?
EBIAT + D&A - NWC - CapEx
- Incentivizing shareholders to sell
- Competitive tension in an auction process
- Significant anticipated synergies
- A target with unique or scarce assets or technology
- A target with dominant market position
- Overpayment
What is the approximate IRR for a 2.5x Cash-on-Cash return over five years?
~20%
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What is Data Validation?
Give an example of income that would not be classified as revenue on the income statement?
Interest income or any income NOT from the sale of products and services to customers
How do you calculate WACC?
WACC = (E/V × Re) + (D/V × Rd × (1-Tax Rate))
When calculating FDSO for a transaction comp, should you use: "Outstanding", "Vested and Expected to Vest", or "Exercisabale" options?
These are paid at close of an LBO transaction, capitalized, and then amortized over time.
What are debt financing fees?
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What does it mean for revenue to be "realized"?
Collection from that customer is reasonably assured.
Does a higher beta translate into a higher or lower valuation?
Higher beta translates into a lower valuation. Beta increases the cost of equity. A higher cost of equity raises WACC. Higher discount rates reduce the present value of every future cash flow.
What is the difference between RSAs and RSUs?
Calculate the goodwill for a transaction where offer value = $1,000. BV All Assets = $600. FMV All Assets = $700. Pre-deal goodwill = $200. Liabilities = $100.
$1,000 - $700 + $200 + $100 = $600.
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What is Ctrl + Shift + >?
Provide 3 examples of non-operating liabilities.
Debt, finance leases, pension liabilities, minority interest, preferred equity,
Name 3 disadvantages of DCFs
Very dependent on terminal value
Need a lot of information / work
Does not incorporate real world market conditions
List 3 reasons why you might use a forward multiple vs a trailing multiple?
Comp set with varying growth rates
Historical performance not indicative of future performance
Historical results have a lot of adjustments
What are stock sales?
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What is Alt + Left Arrow?
Provide 3 examples of non-operating assets.
Cash, marketable securities, equity investments, collectible art, bitcoin
How do you calculate the PV of the perpetuity value assuming a five year forecast period?
(Year 5 cash flow * (1+G) / (D - G)) / (1 + D)^4.5
How do you convert a company's LIFO COGS to FIFO COGS?
FIFO COGS = LIFO COGS - (Change in LIFO Reserve)
How are pre-deal deferred tax liabilities treated for stock sales and asset sales?
Stock sales - persist
Asset sales - eliminated