But you're buying cash for cash. It doesn't make any real difference. You can either pay dollar-for-dollar for the cash component, or let them take their cash out of the company before selling the equity. The outcome is the same. And it also makes sense because the earnings from the cash proportion of the company can only really be valued at the risk free rate.
your confidence is inspiring. Thanks
Melki 4 months ago
Good stuff, please post more!
54spiritedwill54 3 years ago
Superb funda man. Till now nobody were knowing how significant that minority interest affects. Now its much cleeeeeeeeeear
prashprabhu 3 years ago
But you're buying cash for cash. It doesn't make any real difference. You can either pay dollar-for-dollar for the cash component, or let them take their cash out of the company before selling the equity. The outcome is the same. And it also makes sense because the earnings from the cash proportion of the company can only really be valued at the risk free rate.
MikeT2005 4 years ago 2
good stuff...
mamaier30 4 years ago
you are the man.
stighelmer 4 years ago
Wow!....I actually learn something here!
Good stuff, please post more! CAPM, Valuation, WACC, etc...
Fin student in need of schooling here!
EurodanceLove 4 years ago
Ha ha ha! "Finance is not like a science. We just like to pretend it is to justify our high pay."
Classic. Shhhhhhhh! Don't tell them that!
MikeT2005 4 years ago