FIN 401 - WACC (Market Value of Debt)

FIN 401 - WACC (Market Value of Debt) - Ryerson University

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7 жыл бұрын

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Пікірлер: 51

@AllThingsMathematics 6 жыл бұрын

Hello everyone, at the 2:53 mark, the answer should be $4,000,000 instead of $400,000. KZfaq won't allow me to put a note in the video so thought I'd add mention it in a public comment!

@dahadayib2433 5 жыл бұрын

AllThingsMathematics hi teacher would I be able to get note material via email. Many thanks

@ellie8782 4 жыл бұрын

I was scrolling down to see if you mentioned this :)

@fabioladjomo5620 6 жыл бұрын

thank you sooooooo much . i really had a tough time trying to figure out my slides. you are making these calculations very simple. and increasing my love for the subject. i am very grateful

@naturesbliss2903 6 жыл бұрын

Thank you for your step by step instruction and explanation of each step; I am actually understanding this with the help of this video.

@AllThingsMathematics 6 жыл бұрын

good to hear!

@thatman9177 9 ай бұрын

I love the way you broke this down I appreciate that.

@khenth6545 3 жыл бұрын

Your videos have been very helpful. I think I finally have a breakthrough in my class.

@AllThingsMathematics 3 жыл бұрын

happy to hear :)

@hsdcreative 2 жыл бұрын

I gotta find some time after my exams to watch your videos about finance education 😅! Awesome content bro

@khinesweoo3162 2 жыл бұрын

Thank you so much. You save my sleep in MBA journey.

@RashaandLife 4 ай бұрын

Your videos are great, so easy to understand. thank you so much

@beckylee5208 6 жыл бұрын

Thank you so much for making these videos~!!

@mnonelelidambuza5207 5 жыл бұрын

Big thanks from South Africa

@MxsSkate 4 жыл бұрын

For market value of debt, can't we just use the book value of the interest-bearing debt and the coupon rate of interest? I believe, this is a very close approximation since a rise in market interest rates results in a fall in the market price of the debt and the two factors tend to offset each other.

@hassanmujtaba4878 4 жыл бұрын

Life saving video...Thanks :)

@lilmoesk899 6 жыл бұрын

Great stuff, thank you!

@abramriccardo9251 5 жыл бұрын

about bond, due to the maturity date, aren't companies getting the principals while also receiving coupon semi annually, or all the principal are paid at the maturity date ?

@sofiastefani 2 жыл бұрын

Thank you! Your answer of 1106.59 is calculating the full 7% NOT 3.5%. So, now I'm confused.

@agusspermata4600 Жыл бұрын

Show manually without using calculator...how u get pv =1106.59 I still confused...

@jessicazhou8076 5 жыл бұрын

at the 9:01 mark, how get the result of $1106.59 ? What's the equivalent ?

@ivankrouguer70 4 жыл бұрын

hi great vid!!!! just one thing, where do you find the number and the price of the bond online?

@mudendalweendo3660 5 жыл бұрын

At 9:01, is there a formula one can use instead of using a financial calculator?

@hansschonz2719 2 жыл бұрын

Good video, helps a lot!

@maksymilianzielinski3712 3 жыл бұрын

Hey, how to count cost of debt if comany combine financing assets by bonds and loans, in other way when we dont know nothing about YTM about loans and cost of loans in %? Bonds we can get always from the internet but how to get data about loans and combine everything togheter?

@ridwanolayiwola459 5 жыл бұрын

I have a question, can anyone help me with it: an issue was for £100 million and had a coupon interest rate of 7.46 percent. The entire issue was sold in 2012 in a private placement to two life insurance companies, and the issue will mature in 2043. what is the market value of this bond?

@joeeziashi2067 3 жыл бұрын

Thank you, its cleared.

@CTcCaster 4 жыл бұрын

What if the company does not issue any bonds, how would I find market value of Debt? Ive been searching and havent found anywhere that show me ways to find market value of debt Withou the use of bonds

@LegendsOfWallstreet 2 жыл бұрын

The problem is that very few firms have all their debt in the form of bonds outstanding. A best approach is to convert book value debt into market value debt: Treat the entire debt on the books as one coupon bond, with a coupon set equal to the interest expenses on all the debt and the maturity set equal to the face-value weighted average maturity of the debt, and then to value this coupon bond at the current cost of debt for the company. I dont remember the exact equations, and that is the process I am looking for, but I have not find it yet.

@nevadamarschke8052 2 жыл бұрын

Perhaps this can help, kzfaq.info/get/bejne/bbx2mJidyLbSnpc.html

@nicholasmesa9795 2 жыл бұрын

Hi, i like the show, How did you get PV=#1106.59?

@SuperRaikouz 3 жыл бұрын

What about a loan? What if the debt is just loans and not bonds? I've got a closing balance of loan debt on the balance sheet - £465,000,000 does that equals the market value of debt?

@danielwhite8477 5 жыл бұрын

How did you find the Price per Bond? 8:57

@KrishanSingh-gz9op 3 жыл бұрын

But what if the company's debt is not bonds but bank loans? Then how to calculate market value of debt?

@tanyamontrilojwong8309 5 жыл бұрын

How can you get the present value of 1106.59. Which formula did you use? Can we compute by manually?

@JonesDawg 5 жыл бұрын

You can get this value with bond pricing formula. You can compute this manually if you have the maturity, coupon rate, face value and yield to maturity. But the present value of a bond is given by the market.

@welele9010 5 жыл бұрын

Dammit, you're too good!!!

@imdirtydan1493 6 жыл бұрын

At 4:16, how do you know that the face value per bond is 1000?

@AllThingsMathematics 6 жыл бұрын

it's always 1000

@elplantivoro 4 жыл бұрын

How did he compute the PV=$1106.59 ?

@mohammedrashad6351 3 жыл бұрын

Do you know how

@audreychong5508 8 ай бұрын

you can use excel function =PV to calculate :)

@KaDaMaHa 3 жыл бұрын

Legend

@AllThingsMathematics 3 жыл бұрын

Thanks :)

@akinsanyayetundemulikat2479 7 ай бұрын

Why don't you reply how you got 1106,you're only replying on good comments!!!!!!

@fathimahasna9368 3 жыл бұрын

How did he compute the PV=$1106.59

@mohammedrashad6351 3 жыл бұрын

Did you know how

@willbennetts9776 2 жыл бұрын

@@mohammedrashad6351 Did you ever find out??

@sandiletukani 6 жыл бұрын

5000*800 = 4 000 000, that is 4 000 000 not 4 00 000... Nice stuff though

@AllThingsMathematics 6 жыл бұрын

ughhhhhhhhhh!!! thanks for the heads up lol didn't notice. Good that it's not as important of a part in the video. I'll try putting a note to let people know.

@sandiletukani 6 жыл бұрын

AllThingsMathematics No problem man. Anyway, I've subscribed to your channel, your work is beautiful. It was just a minor mistake, don't worry.