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Mortgage Math Q - Given fixed principal pmt, what is equivalent schedule?
I'm having a brain fart. $30,000,000 loan 6% interest rate $60,000 monthly principal payments, fixed amount I'm trying to answer the question "what is the equivalent amortization schedule of this?" Aka, 20 years, 25 years, 30 years? i guess it changes over time as the loan balance decreases, but...
WTF is the point of low amort structures in DL/PC/lev lending?
Why not just do interest only? Can someone explain to me the purpose/history or regulatory background of low amortization deals? Explain it to me like I am an idiot (which I am). 1% of even 2.5% per annum is not materially reducing the commitment and credit risk…so I simply don’t understand why...
Predicting D&A in the future
If you know the amount CapEX will grow by over the next 10 years, how would you predict how much D&A would grow by.
Curtailment '%' in Amortization Schedules
I wanted to lay down a curtailment, admin fee and default rate to an existing amortization schedule, and calculate the IRR. 1. I am confused as I am given the annual curtailment rate as opposed to (absolute) amount. What is this a % of? (n.b. my schedule is in months) 2. How can I embed the default...
Accumulated Amortisation in the McKinsey Valuation bible
Hi, I'm assuming 90% of members of this forum either own, or have read, a copy of McKinsey's "Valuation: Measuring and Managing the Value of Companies". Because I like this book so much I have been trying to replicate the Heineken case study to ensure I fully and 100% understand everything they're...
Amortization Question
Hi all, Would someone be able to explain how amortization flows through the three statements? I understand that it will lower pretax income on the income statement, but I've read that it is considered a non cash expense so it should be added back on the statement of cash flows. This doesn't make...
Bank debt and amortization.
Hi all, I was looking through WSO technical guide and in the Bond/Debt section, it mentioned "Bank debt is secured by the assets of the company and therefore normally commands lower interest rates. The trade off is that it will typically amortize and may have maintenance covenant." Could someone...
Amortizing Acquisition Cost
How do you go about modeling an acquisition cost that is to be amortized? Usually you put everything in goodwill and then debt and equity to get the BS to balance.How would you balance it with only a fraction of the cost being recognized each year?
Amortization of deferred loan issuance costs
If you are modelling a company's IS would you assume any amortization of deferred loan issuance costs in your projections if the company has taken this pretty regularly? and also would you just lump sum this into interest expense (since these costs are related to loans) or would you put it under...
Loan Amortization Table template
Does anyone know where I can find a good automatic loan amort table/template that just lets you input information and it creates the complete loan amort schedule for you? I need one that calculates interest only, and then interest + principal whatever years after. Thanks.
$1 M Leveraged Dividend
How would a $1M leveraged dividend issued this year affect the three statements, if amortized for next 5 years, straight line? Would there be amortization expense of $200K for the first year? Thanks.
Debt Amort
I'm having a hard time thinking these accounting entries through. Company has a convertible note that gets amortized. What entry am I missing here because the BS doesn't balance with what I have below?? with amort expense..... P&L NI - down CF NI - down Amort - add back cash impact is zero BS Cash -...
Interview Question - Reducing the write-up?
Why would a strategic acquiror want asset write-up post transaction? I understand that a financial acquiror is focused on FCF and wants the tax shield, but if I am a strategic and want a higher EPS, would I not want to reduce the write-up?
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