HELP: How to get to D&A given assumptions?
I need to PF for a transaction where the target company is transforming to a C-corp....
All that is given is forward looking capex, interest expense, tax rate, EBITDA, CFFO and FFO and I need to calculate Depreciation to roll forward. How could I accurately calculate this given the estimates?
Originally I planned on using EBITDA - NI - Int Exp but how can you arrive to an accurate NI without D&A ,EBIT, PPE or any other estimates broken out?
Would it be best to take EBITDA - Interest Expense * (1-t) to get NI? Then take NI - EBITDA - Interest Expense - Taxes to get to D&A?
FFO? Is this a REIT?
in general, i would create a depreciation waterfall schedule - forecast capex and depreciate it straight-line
see macabacus.com for relevant models...
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