Summer Analyst (Generalist)

Questions were:

Cash based accounting,
access to both debt and equity: cost of capital, balance sheet rating impacts, market dynamics.
How does a $10 increase for depreciation
Finance lease vs operating lease (which effect valuation)
Syndicated loan market vs private credit: lower cost of credit, larger base, private credit has less flexibility and less relationship based
Want to stay private so they don’t have to deal with the SEC,
Conditions for a strong ipo market: low volatility, positive expectations of the market down the line,
Valuation: walk through 100 interest expense, 50 cash interest, 50 pik interest, 40 tax rate

Net interest down 50, net income down 40, balance sheet, cash up 10, debt up 50, retained earnings down 40