Big4WallStreet Finance Blog
LEVERAGED BUYOUT ANALYSIS
Excel Financial Model Financial Modeling LBO Leveraged Buy Out Model
Management Accounting (Part 2)
accounting cost accounting cost per unit costs fixed costs management accounting semi variable costs variable costs
Management Accounting
accounting break even analysis budgeting controlling cost decision making finance management accounting planning
1. Intro to Management Accounting a. Definition “Management accounting is a system which analyses historical, actual and forecast data to provide managers the information for decision making.” b. The management accounting department The department provides management information for: Planning: budget for the year, budget updates during the year, long term plan beyond the year. Controlling: how do the revenues and costs compare with the budgeted ones and those of the previous periods. What are the variances? What are the reasons for the variances? Decision Making: profitability assessment, buildup of selling prices, product costs comparisons (inventory, manufacturing, labor etc..), make...
Valuation Pitfalls
discount rates growth pitfall valuation
The difficulty of a valuation does not focus on how to find and apply any of the chosen methods, but rather on the ability to predict the future. In practice what is valued is the business model, the company strategy, the attraction of its products, its prospects and its risks.
Below we outline a series of pitfalls common among analysts and investors related to the valuation of a company.
Weighted Average Cost of Capital
Capital Asset Pricing Model capital structure CAPM Cost of Debt Cost of equity country risk premium CRP Leverage WACC Weighted average cost of capital