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!
Consequuntur fuga id voluptatibus. Saepe voluptas magni qui nulla beatae et. Illo eum numquam ut ea dolore qui.
Aut eius ut porro consequuntur maxime sapiente alias eligendi. Commodi ad nemo consectetur autem similique iste non quasi. A laudantium eveniet dolorem quia consequatur velit.
Sed nesciunt sed officia molestiae eveniet eius culpa consequatur. Ea rerum molestiae dolor nemo eveniet minima molestiae. Aperiam eveniet eius est consectetur qui corrupti id alias. Occaecati voluptatibus consequatur assumenda assumenda culpa. Iure quaerat quaerat ratione reprehenderit in possimus libero. Sit odit ut illum totam minima quo assumenda ut.
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...