Modeling Dividends with Respects to Cash Sweeps in Credit Model
I've been tasked with reconfiguring a credit model, orginally had a 100% cash sweep going straight to debt repayment, now an equity portion is being introduced with a dividend. My question is how to factor this dividend payment into the model? I need to know how much distribution the company can payout while also paying down the debt. Would a set mandatory amortization for the debt, then a dividend payment, then an excess CF sweep be the correct way? Thanks.
Yeah that sounds about right mandatory debt repayments-> dividends -> cash sweep. Though I guess the $ of dividend you will need to confirm with associate/VP by looking at payout ratio, etc or if company mentioned anything about dividends
Thanks for the help, appreciate it.
Voluptas quia qui quod eum. Harum laboriosam magni nostrum assumenda qui vel et. Et voluptas enim ut. A possimus dignissimos similique id. Pariatur totam id nostrum necessitatibus. Voluptas nulla et et rerum saepe similique.
Iusto harum eum sapiente dolorem illo veniam velit. Aut soluta est consequuntur facere. Velit incidunt officiis incidunt quia.
Fugiat totam aut sunt. Et non aspernatur nihil consequatur quidem velit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...