6. Be Cautious with Levered vs. Unlevered Beta When using CAPM, ensure you're using the correct form of beta. Levered beta reflects a company’s debt level, while unlevered beta is adjusted for no debt. Using the wrong beta can misrepresent the cost of equity and skew your WACC. 7. R...
A key feature of the debt schedule is to use the Revolver facility and how it works so that the minimum cash balance is maintained and ensures that the Cash account does not become negative in case the operating cash flow is negative (Companies in the investment phase who need a lot of d...
Why is a company valued so differently between its post-money investment valuation and its subsequent 409A valuation? What are levered and unlevered cash flows? Why do we conduct separate valuation analyses for both scenarios? How can the cash ratio be used to evaluate bu...
What are levered and unlevered cash flows? Why do we conduct separate valuation analyses for both scenarios? What are the different methods to finding the intrinsic value of a public company? What is the difference between depreciation and facilities capital cost of money? De...
They use an index series of (de-smoothed, unlevered) returns constructed by Colonial First State that includes both direct infrastructure and utilities. The main difference to Peng and Newell15 in the risk statistics is presumably the result of ‘de-smoothing’ the time series of the unlisted ...
apartments should continue to see re-allocations from property types such as office and retail -- sectors that still command significant capital in the commercial real estate world. The apartment sector’s enviable mid-6% unlevered Internal Rate of Return (IRR) is driven by its outsized long-ter...
What is the purpose of it? What major assumption causes a difference between technical analysis and the efficient market hypothesis? Define and describe __Vendor Analysis__. What is the purpose underlying the reporting of diluted EPS? What are levered a...
What are levered and unlevered cash flows? Why do we conduct separate valuation analyses for both scenarios? What are the purposes and uses of assets? What is the main risk of buying or borrowing capital to invest in an asset? What financial facto...
What is the key economic principle involved in calculating the present value and future value of multiple cash flows? What is the relationship between a discount rate (or IRR) and a capitalization rate? What causes differences between the...
What is a tranche? What are levered and unlevered cash flows? Why do we conduct separate valuation analyses for both scenarios? 1. Explain and discuss the opportunity cost? 2. How does the opportunity cost relate to the notion of incremental cash fl...