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How do you calculate leverage?
Debt divided by EBITDA. Net leverage is net debt divided by EBITDA. There are multiple permutations of this and they will usually be some variant of operating cash flows.
Reacting to Recent Market Events
To most market observers, 2020 has been nothing short of bizarre. Not to say that certain hedge funds have not made a ton of money guessing correctly (more on that later), but we are in a time where there are around 400,000 deaths from the coronavirus
There are no jobs in finance other than investment banking.
Most people who get a finance degree do not end up becoming investment bankers, despite practically everyone putting it down as their first choice.
Many students make the mistake of going investment banking or bust and never realize that they never wanted
Fee Event Dramatization
MegaBank A is approached by a client to help them advise on a purchase of their competitor funded by a mix of debt and externally issued equity.
My god, this will be a $50 billion dollar deal. 10 basis points means a $50 million dollar fee! – Coverage/M&A banker
When Does the COVID Recovery Start
The world will not be the same after the coronavirus and will adjust to a new normal. Now when the dust settles is another question. Is reopening up now a good idea when new cases are still springing up and people are dying at a
Are you an investment banker? Do you want to go to the buy side?
Bankers usually look to exit to private equity. However, the smartest bankers usually go to hedge funds.
Private equity is supposed to pay more and have more interesting work. In reality, modeling for IRR and operations is not much
We haven't been writing a lot lately because work from home is hard.
Somewhat amusing, I was supposed to meet a friend somewhere in December and we decided on Wuhan. She later decided that she did not want to meet up and went to California. My AMEX concierge then cancelled my
Equities During Coronavirus in April
Ever since coronavirus has swept the world, almost all countries are looking at a deep recession or even depression, with no strong indication in terms of when things will turn around.
Markets have followed the escalation in cases and stocks are down for almost everyone. For passive
The Equity Risk Premium after COVID-19
In finance class and before preparing for investment banking interviews, everyone has to walk through a DCF.
In figuring out a discount rate, you look at the cost of debt and the cost of equity.
Now this weighted average cost of capital stuff is very theoretical but