Financial Modeling Q&A Bundle

What makes learning to model real estate assets challenging? Industry limitations to "one size fits all" modeling • Different players interact with real estate financial models in different ways Financial models are key to many real estate functions Such as: Private Equity Brokers Lenders Opera...

Calculating EBITDA -EBITDA is a non-GAAP metric so you usually won't find it in the 10K/Q -if you go by the literal def of EBITDA you only need to add back D&A (found in CFS) -most analysts also exclude stock based compensation expense (also in the CFS), so add this back as well -in addition to SBC...

Forecasting Frameworks 1. Growth stack 2. Mix accelerator 3. Comp waterfall 4. Box replicator 5. Ramp curve 6. Creative lags 7. Mix extrapolation 8. Mid-cycle 9. Data correlations Five Key Questions of the Fundamental Investor 1.) Is this a good business? 2.) How does this business actually make mo...

List the five equivalent methods for firm valuation 1. Adjusted Present Value 2. Free Cash Flow to Equity 3. Free Cash Flow to the Firm 4. Dividend Discount Model 5. Residual Income Fully list all the broad steps for calculating the Value Added by the firm with the ADJUSTED PRESENT VALUE method in ...

Income statement summarizes the firms performance over a set period of time; reports the uses of assets and capital, what our shareholders earn over a time period Expenses include all the costs that the firm undertakes to create the revenues. This includes labor, materials, selling cost, depreciati...

Credit Analysis The evaluation of the creditworthiness of a company 2 types of creditors Trade creditors and non trade creditors Trade creditors Provide goods or services, bear risk of default, most short term and usually implicit interest Non-trade creditors Provide major financing, bear risk of...

What is working capital? It's the measure of a company's current assets minus its current liabilities What does working capital mean? High and low? It's a measure of the short term efficiency of a company, measuring its ability to cover potential short term issues What is operating working capi...

Name the Excel function that can be used to calculate the Present Value of an Annuity. PV State and explain the effect on the present value of a single future cash flow when you decrease the number of periods. Present value increases because a larger investment is required to have the same amount a...

Risk the chance an investment's actual gain will differ from the expected return. The main types of risk are systematic (tied to the broader market) and unsystematic (specific to a company or industry) risk. Return the change in the price of an asset or investment over a period of time. A positive...

Board of Directors Hold management accountable and make board-level decisions about corporate strategy Company Management Measure performance and make strategic, operating and financial decisions Creditors Measure creditworthiness, liquidity and bankruptcy risk Investors Make decisions on buying ...

What are the four steps of business analysis 1. Strategy analysis 2. Accounting analysis 3. Financial analysis 4. Prospective analysis What does strategy analysis encompass 1. Identifying key profit drivers and business risks. Also, assesing profit potential 2.It is essential because it enables the...