Lecture 9 - Intro to Financial Modeling

Lecture 9 - Intro to Financial Modeling - Intro to...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Intro to Financial Modeling Bus M 475
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Topics Public Company Premium DSCR / Debt Schedule Building Projections Internal Rate of Return Sensitivity Tables Discussion: Balance Sheet Adjustments
Background image of page 2
Public Company Premium “Privatization” Generally, you will have to pay a premium to take a company private Call it 30% Is that off of the enterprise or equity value? Understand what entry multiple this implies – your purchase price will be different than its current Enterprise Value
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Example: Red Robin Red Robin Current Equity and Enterprise Value: Market Cap (intraday) 5 : 180.28M Enterprise Value (3-Dec-08) 3 : 391.76M Account for 30% premium: Equity Value =market cap * 1.3 234,364,000 Enterprise Value = equity value + net debt Equity Value 234,364,000 + Net Debt 211,480,000 445,844,000 *Found on Yahoo Finance *
Background image of page 4
Debt Service Coverage Ratio This will allow you to understand what a traditional bank would realistically lend to your company Calculation: Cash available / Total Debt Service For ‘cash available’ you can use operating income or EBT
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/06/2012 for the course BUS M 475 taught by Professor Gregpeterson during the Fall '11 term at BYU.

Page1 / 12

Lecture 9 - Intro to Financial Modeling - Intro to...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online