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Valuation MBA Spr20 - Shared screen with speaker view
Perry Singh
43:57
different value at different stages of economic cycles?
Sergio Botero
44:33
when you consider cash do you just incorporate it in terms of net debt? what about when cash exceeds debt?
Perry Singh
58:12
c
Jessika K Larsson
58:27
b
Jessika K Larsson
58:46
Sure am
Jessika K Larsson
01:02:05
But in a bankruptcy, wouldn’t any excess equity value go to debt holders?
Sam Greene
01:05:52
Is this how hedge funds are thinking about PCG?
Jose Sosa
01:08:08
but we're equating stock price volatility with volatility in financial results for the company, which may not be the same right?
Jose Sosa
01:09:07
a stock could be volatile but the company truly has no chance of ever producing good financial results
Jose Sosa
01:09:34
ok thanks
Sam Greene
01:12:20
why doesn’t equity value go to zero in the event of banruptcy
Sam Greene
01:12:24
sorry please ignore
Julian Stern
01:13:15
You just gave the answer away to Keenan! Yes, take the project
Julian Stern
01:13:36
Firm value goes down
Sam Greene
01:14:39
That’s probably why banks write strict covenants in the debt
Darshan Kesaria
01:15:24
All debt is becoming covenant light anyways, covenants won't work
Darshan Kesaria
01:15:41
Is that the reason why some banks prefer to convert debt to equity when things start to get bad?
Sam Greene
01:17:31
risk will go down
Sam Greene
01:20:07
lower interest rate*
Darshan Kesaria
01:20:41
This session is a lesson on how to screw banks over... Future PE guys shut your ears
Darshan Kesaria
01:20:51
LOL
Oliver Boyle
01:25:15
haha
Perry Singh
01:30:41
long term
Sam Greene
01:30:41
long
Julian Stern
01:30:42
Long term
Julieta Dapero
01:30:43
long
Zhaoyi Gao
01:30:44
long
Pascal Schaefer
01:30:44
long
Sam Greene
01:30:47
risky
Perry Singh
01:30:47
risky
Pascal Schaefer
01:30:48
risky
Julian Stern
01:30:48
Risky
Julieta Dapero
01:30:48
risky
Oliver Boyle
01:30:49
risky
Zhaoyi Gao
01:30:56
either way
Oliver Boyle
01:31:10
luckin coffee
Sam Greene
01:32:16
how do we bring in the risk of the government taking over the company and wiping out equity investors in the option pricing model?