Session 8: Cost of Capital Wrap-up and First Steps on Cash flows
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- čas přidán 7. 08. 2024
- Intros class, we started debt ratios for companies and how to deal with hybrid securities.. If you are interested in getting updated default spreads (on the cheap or free), try the Federal Reserve site in St. Louis:
fred.stlouisfed.org
These are spreads on indices created by rating, updated daily. Neat, right? We started on our discussion of cash flows, by laying out the big differences between earnings and cash flows, and why getting earnings updated and cleaned up is a necessary first step. In particular, we went through the process of converting an operating expense (like leases used to be pre-2019 into a financial expense.
Start of the class test: pages.stern.nyu.edu/~adamodar...
Slides: pages.stern.nyu.edu/~adamodar...
Post class test: pages.stern.nyu.edu/~adamodar...
Post class test: pages.stern.nyu.edu/~adamodar...
Very useful lecture sir, helps us to compare our small companies GP NP, operational profit forecasts, actuals with these large trend numbers
Professor, how should you treat Capex in leasing? If the Right of Use is growing each year, should I just subtract Right of Use Year 2 - Year 1 or there's another way?
Professor can you do dcf valuation of a bank, I didn't quite get it.
Gordon growth model approach could be a better approach for valuing banks. And Price to book value too if it's a relative valuations.
When valuing financial Services, you would DGM.
Why professor took diffrent value of euity in finding cost of capital(7350) and in ROE(3130).
Is it market value of equity and book value of equity.
Dear Prof, With your logic to make any contractual obligation as a debt and not expense, how would you rationalize salaries, utility bills etc. that features as operating expenses?
I think it has to be tax deductible. Lease expense are tax deductible it seems