The new Risk Rock Star youtube video is now live. Two years of experiments and pivots lead to a new design and brand new positioning for an idea whose time has finally come. All part of our launch of the Risk Training Network Subscription. Check it
Introduction to Financial Modeling A quick examination of building financial models with a focus on building financial models for financial reporting, investment decision making, financial planning and budgeting purposes. At a personal level the most common application of financial modeling for me has been building
Relevering Beta When assessing the value of a company’s operations free cash flows need to be discounted using the weighted average cost of capital (WACC). WACC or weighted average cost of capital is calculated using the cost of equity and cost of debt weighting them
Investor due diligence and pre-investment audits. Whether you deal with Angels, Venture Capital investors or your local banker as a small business owner you need to understand the documentation requirements of fund raising as well as the due diligence and pre-investment audit process. While the
In our previous post we covered the three basic inventory valuation models. We now illustrate a simple example of the average cost model in the table below: Bought Sold Average cost per unit May 5 units @ $20/unit $20 Jun 3 units
Inventory valuation models and profitability In order to value inventory, there is a physical count of inventory that takes place at the end of the year which can be a tedious task. This is because even though a business may have an inventory where all
The top 5 most active courses in October on the Learning Corporate Finance site so far: Top 10 MBA: 15 months as a MBA student at Columbia Business School Accounting Crash Course Corporate Finance: First Course Computational Finance: Building Monte Carlo (MC) Simulators in Excel
Using Office Depot as an example the case walks through liquidity, leverage, productivity and profitability ratios in two separate iterations. This case is the first in a two part series that compares Office Depot with Staples using the principles of Ratio Analysis.
The first course in Corporate Finance starts with a basic introduction of notation and terminology and then introduced the concepts of Financial Statements, Time Value of Money, Risk and Return, Opportunity Cost, Cost of Capital, Weighted Average Cost of Capital and Return measures. It closes with a 38 page detailed case study on Electronic Arts that reviews the Electronic Arts (EA) balance sheet, profit and loss statements, shows how to project the EA statements in the future and arrive at a valuation of EA at that point in time.