Hi, Say you know how much a companies profits will grow by over the next 8 years. How would you go about predicting future capital expenditures for that company.
18 Feb 2021
When I think about the evolution of the market place for debt and equity, I am reminded of the importance of the primary market. At some point in our society, ownership rights were established and equity was born. Capitalism led citizens to invest money in small businesses (primary market) for CapEx and working capital. We have always had a resale market (secondary market) where buyers purchase businesses and assets from others, but only in our recent history has the secondary market and derivative market become the focus for investors.
23 May 2012
Hey guys, I have been lurking on here for a while, and this is my first post. I have two internship offers this fall ( couldn't find anything spectacular). There both at BB in PWM. I really can't decide which one would be more beneficial or rewarding, and was hoping to get some input. The first internship would be me working under management. The financial advisers essentially would be our clients. I was told I would be putting on events, and would help scheduling conferences. I am not 100% sure what this would entail. The second internship would be working with a team of financial advisers, helping with powerpoints, some excel work, and word. No cold calling. The prospects would essentially be our clients.
16 Aug 2011
I've heard that high capex reduces returns significantly in an lbo model. I was wondering what the true impact of increasing capex is. If you increase capex, wouldn't you also be increasing D&A which increases EBITDA and, as a result, your exit valuation. If you increase capex, are your returns really lower?
31 May 2011
Maybe a stupid question, but when you calculate free cash flows by subtracting capex from EBITDA and the change in working capital, do you normally adjust for the fact that some capex might be sitting in accounts payable and hence should be backed out of accounts payable in order to not count it in both capex and change in working capital?
18 Sep 2013
So the 20-f is prepared in accordance with IFRS. http://s02.static-shell.com/content/dam/shell-new… Why is there a "purchase" expense line item? I've gone cntl+f crazy on the thing, but I cannot find an explanation of that amount. I also looked up some IFRS guides on OG purchase accounting and most say exactly what you would think: if future economic benefits are determinable, then capitalize. That was from a PWC article. I'm unconvinced though that RDS is spending $327MM (2014 20f) in borrowing costs
06 Aug 2015
Let's say you know you will need $xx in CapEx as soon as you take over a company, but you don't want to have to rely on cash flows to fund this. How do you build this into an lbo model? Would you have to increase the total amount invested by the PE firm? What would be the implications on all three financial statements?
06 Oct 2009