Biws - Study guides, Class notes & Summaries

Difference between levered and unlevered DCF? Correct Answer: A levered DCF projects FCF after interest expense and interest income, where an unlevered DCF projects FCF before the impact of interest. Therefore, a levered DCF attempts to value the equity portion of a company and an unlevered DCF values the company as a whole Steps to calculating the WACC? Correct Answer: 1. Determine the target capital structure consistent with the firm's long term strategy. You can look at historical compa...

How do you value banks and financial institutions differently from other companies? Same "methods" but with nuances: 1. Use P/E and P/Book rather than EV/Revenue, EV/EBITDA due to a banks unique capital structure 2. Use metrics such as NAV (Net Asset Value) and screen comps based on those 3. Use Dividend Discount Model (DDM) rather than DCF *Reason you treat FIG differently is interest is a large part of a banks Revenue and Debt is part of the business model rather than just a financing...

DCF BIWS Difference between levered and unlevered DCF? - A levered DCF projects FCF after interest expense and interest income, where an unlevered DCF projects FCF before the impact of interest. Therefore, a levered DCF attempts to value the equity portion of a company and an unlevered DCF values the company as a whole Steps to calculating the WACC? - 1. Determine the target capital structure consistent with the firm's long term strategy. You can look at historical company debt to tot...

What do bankers do? ... What is the IPO process? First, meet with client to gather basic information such as their financials, industry overview and who their customers are Next, meet with other bankers and legal team to draft the s-1 registration statement (describes the business and markets it to investors). You will receive comments from the SEC and revise as necessary. Road show process to institutional investors 00:02 01:11 Can you tell me about different produ...

Let's say I'm working on an IPO for a client. Can you describe briefly what I would do? You meet with the client and gather basic information - such as their financial details, an industry overview, and who their customers are. You meet with other bankers and the lawyers to draft the S-1 registration statement - which describes the company's business and markets it to investors. You receive some comments from the SEC and keep revising the document until it's acceptable. You spend a few week...

You've never worked in finance before. How much do you know about what bankers actually do? I've done a lot of research on my own. Based on that, I know that bankers advise companies on transactions - buying and selling other companies, and raising capital. They are "agents" that connect a company with the appropriate buyer, seller, or investor. The day-to-day work involves creating presentations, financial analysis and marketing materials such as Executive Summaries. Let's say I...

DCF BIWS complete study guide