Finance Tutoring with CPA, CFA PhD & MBA Tutors

We provide live online tutoring for Corporate Finance B5300 which is the introductory corporate finance course at the Columbia Business School. Corporate Finance B5300 course is a mandatory introductory finance course for all EMBA students. It covers basic finance concepts that are essential for all managers, irrespective of their specialization.

If you use the perpetual growth rate method to arrive at the terminal value, you will need a cash flow estimate. What cash flow value do use to calculate terminal value if you are using the perpetual growth method?

Warren Buffett bought equity shares of Paramount Global. A great brand without a doubt. A number of operating units from CBS, Paramount, etc. Valuation seems relatively cheap in terms of EV/EBITDA or EV/sales. Reasonable margins and RoE or ROIC. Unpredictable growth? Maybe. But that is Warren’s expertise! Paramount Global has three classes of equity shares! […] Read more

What you expect the states to do is to swing from the wide state to the narrow state. So you must take positions that benefit from the next move based on the current state. Stock can go up or down from the current position. You must use other indicators to validate your positions.

Stock screeners or equity screeners help you narrow down the universe of stocks to investigate into a more manageable number. The stock screening criteria you select and what stock screens are best depends on your investment styles, needs, and personalities. Some of the factors we recommend you understand when selecting your equity screener include:

Terry Smith has clearly outlined the financial metrics that you can expect of a good company! Terry indicates that good companies should have good metrics even in poor years. He has laid out financial and operating metrics. Growth was another metric Terry Smith added to his definition of good company. Terry Smith wasn’t talking about revenue growth or growth in EPS.

Stock-based compensation or employee stock options have become popular today. It is used to attract, motivate and retain employees. Therefore it is imperative to account for the impact of stock-based compensation or employee stock options when you value companies. So how do you deal with stock-based compensation in your valuation model? We address this question on this page.

CFAs and MBAs will encounter the word beta early in their finance courses. Beta is a critical component in corporate finance. There are different types of betas and multiple aspects to betas. There are different types of betas and multiple aspects to betas This article considers the various aspects of beta in finance. 

Publically listed companies have to disclose specified information on their taxes in their annual reports/form 10-Ks. This includes:

Effective tax rate for years covered.The income tax benefit or expense.The components of deferred tax assets and deferred tax liabilities.Reconcillation of the differences between the US statutory rates and income tax expense reported in the income statement.Actual taxes paid.Expected changes/risks involved in any tax positions taken.Allowances that may impact tax liabilities; and more.

These disclosures are found throughout the 10-k starting with the MD&A all the way up to the notes to the financial statements.

But when valuing an asset, we are interested not in the past but the future. We are trying to estimate the free cash flows of the business. Taxes will impact our free cash flows. In this context, what can actual taxes paid tell you about future cash flows and valuation?