How Investing Banking and Markets?

Accounting Foundation:

Example: If Depreciation increase by $10 how does that flow through all three statements at 20% tax rate?

Answer: Operating income drops 10 dollars, net income drops 8 dollars, Cash flow

Statement: Net income down 8 dollars add back to 10 dollars depreciation,property, plant and equipment down to 10 dollars, Cash up 2 dollar, Retaining earnings down 8 dollars

Valuation methodology:

Be able explain the intrinsic vs relative valuation (DCF vs Comps/ Precedent) and when they applies.

LBO and M&A Mechanic

Understanding the accretion and dilution drivers,source and uses of funds, and how leverage impacts equity returns.

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u/Excellent_Baseball43 — 6 days ago