IBSC WORKSHOP

what is the wacc

• cost of equity(e%) + cost of debt(d%)

• cost of equity (e%) ( 1 - tax rate) + cost of debt (d%)

• cost of equity (E%) + cost of debt (d%) (1 - tax rate)

conceptually, what is wacc

• Beta

• Risk- Free Rate

• Discount Rate

What does depreciation effect?

• PPE

• Cash

• Net Income

• Goodwill Impairment

What is the price of WTI oil right now?

• 78 ish

• 83 ish

• I don't know :(

What is the difference between accounts receivable and deferred revenue

• AR is money that is collected already

• DR is money that is collected already

• There is no difference; one turns into the other

pick a "correct" multiple

• EV / Net Income

• EV / REVENUE

• EV / EBITDA

how do the three financial statements link together?

• I can explain this

• I can't answer this

how do the 3fs change when there is a 10$ increase in depreciation, with a 30% Tax rate.

• i can explain this

• i don't remember

what is working capital?

• current assets - current liabilities

• total assets - total liabilities

• none of these are right

how do you calculate unlevered fcf

• Nopat - cap ex +/- changes in NWC + non-cash adjustments

• operating cash flow - cap ex

• free cash flow - interest expense - debt obligations