Where am I going wrong in this modelling test?
Hi Guys,
Bit cheeky of me to ask here and apologies for doing so, though I've been asked to complete the attached modelling test (instructions on first tab of the model).
I think I'm going wrong in the following 2 areas:
Debt - my levered returns are stupidly higher than my unlevered returns.
Corporate Tax - I have never been asked to account for corporate tax before in a model. I am attempting to only pay it in on profits only but I can just tell by the amount of guesswork that I'm doing something is wrong.
I have made some additional assumptions in the model not asked for in the test - please ignore these.
Any advice would be greatly appreciated - I just can't submit this piece of crap in it's current state.
Thanks all
| Attachment | Size |
|---|---|
| Modelling test 1.77 MB | 1.77 MB |
Looks like you're not contributing any initial equity in your levered scenario. Your initial cashflows are positive, I would start by taking a look at that.
A couple things:
Thanks mate, massive help!
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