| Estimating the coupon rate for a bond issuance...I am planning to:
1) Look up the company's credit rating
2) Use the rating to find the current yield spread for similar (rating/maturity) bonds
3) Look up the relevant Treasury forward rate for three years from now
4) Add the yield spread to the Treasury forward rate
Will this work or is...|| 2 years 2 months|
| NYC banking salary --- where does it all go?A reasonable breakdown for a thrifty analyst during a good year:
$125,000 All-in compensation
-46,033 Taxes (29.7% federal/state/city, 6.2% social security, 1.45% Medicare)
-19,800 Rent ($1,500 per month) and utilities ($150 per month)
-6,000 Food ($500 per month)
-6,000 Entertainment ($...|| 2 years 3 months|
| Private equity arrangement feesAre they a tax deductible expense of the target company?|| 2 years 5 months|
| Question for PE GeniusesWhen they want to take cash out of their investment, sometimes they will do a dividend recap. Why wouldn't they use the debt proceeds to buy up treasury stock instead? Wouldn't that delay/decrease the tax effect?|| 3 years 1 month|
| Enterprise Value, according to McKinseyI noticed that in the McKinsey valuation book, enterprise value is defined as the present value of operations + the present value of non-operating assets.
That is a different definition from the one I learned in class, EV = Equity + Debt + MI - Excess Cash. I realize that they have the same...|| 3 years 1 month|
| Need Interview AdviceI have been interviewing for Summer Associate positions at BB banks and, while I am regularly invited back for final rounds, I haven't been able to close the deal anywhere yet.
I have gotten some feedback from alumni and interviewers and the consensus seems to be that I have a very strong...|| 3 years 3 months|
| M&A Question - Seats on the board? When an acquirer company acquires a target company, does the target generally get seats on the acquirer's board? Is that typically among the terms of the deal?|| 1 week 1 day|
| Exploding OffersHow long do they usually last? I have heard everything from 24 hours to 2 weeks.|| 3 years 3 months|
| LBO Model Question - Fair value? In a real-world lbo model, do you bother to mark the target's balance sheet to fair value? Or is it more trouble than it's worth?
Just wondering what is done in practice.|| 1 week 2 days|
| Enterprise Value - Hypothetical example Let's say you have a hypothetical company with $50 market value of debt and $50 market value of equity. No preferred stock, cash, or minority interest. The enterprise value is $100.
The company decides to take on additional leverage. It raises $25 in debt (at a higher interest rate) and uses the...|| 1 week 3 days|