Likewise, it's been an absolute game-changer. My textbook is constantly trying to overcomplicate the topic and incorporate unnecessary levels of algebra to prove concepts that can rather be understood through the understanding of accounting.
Thank you so much for these! I am studying Corporate Finance for CFA level II and these are like life savers! You are so far the best tuitor I have even seen on youtube! Keep your good work going!
Best teacher ever!!! Please continue the good work. You're literally saving lives. I've been stuck trying to understand what my teacher is explaining for half the trimester but then I found you and I've all the stuff clear. Was literally verge of severe mental breakdowns. Thank you for this and everything else! ❤️
Thanks for making the whole MM proposition easier !! Attended couple of lectures in University but didn't get the rationale behind the MM assumptions ;Now, things are clear and understandable after watching all your videos! best wishes!!
The whole M&M series has been hugely helpful for me. I've got my CIMA F3 exam on Monday and this has been a lifesaver during my last minute revision - thanks so much!
This is such a concise explanation, and you seem to cover questions that come to a student's mind before we even get the chance to ask them! Better than my proff, thank you!
Amazing teaching pedagogy and pretty comprehensive content. I am using these videos for my MBA interview prep and they are so useful right now! Thanks and love from India.
Hi, Thank you so much! Your videos helped me to understand this topic and pass my midterm. Your videos are so useful and understandable. You’re great!! Wish you all the best!!
Hello, thanks alot for your axplanation.. my queston how can we interpret the result that the share price got increased but in the same time the required rate for return (discorunt rate) got increased. we know according to Gordon model that the share price =D/r, D is divivends anr r is RE (return on equity). so in this equation when RE increase the price share decrease. But according to M M we notice that RE increase (because of increasing debt and risk) but the share price go higher??????
In the last example of part 3, as introduced, value of any firm=FCF/WACC, as FCF and the value of the firm are known, can we just use the formula WACC=FCF/the value of the firm=9.0909% which is the same result with that of you introduced in the video ?
So, I tried to check the answer by using the same approach you used at the end of the third video: by dividing FCF/WACC, in this case FCF/(WACC-g) and i found a completely different answer for the firm's value. Did I do something wrong? Or since there's a growth rate the validation is not possible. Inputs: EV = 185,6 ; D/E = 0,53 ; rD = 0,08 ; t = 0,4 Output: rE = 0,106 ; WACC = 0,086207 and FCF/(WACC - g) = 220,95 I found an EV of 220,95 and not 185,6 as expected. *To compute rE I used rE = rU + D/E*(rU - rD)*(1-t)
How is it possible, that just announcing the news has anything to do with the balance sheet? I mean - I suppose that it can make a difference on the market value of the equity (the share price goes up on the stock exchange), but the balance sheet does not include the market value but the nominal value of the shares sold during the IPO. Let alone - what does it have to do with the value of the assets in the balance sheet? There are receivables, stock, intangible assets and so on - on the assets side of the BS- market fluctuations have nothing to to do with the value of those real world assets, do they?
I wish I could explain how greatly this series has helped me understand M & M concepts!
Likewise, it's been an absolute game-changer. My textbook is constantly trying to overcomplicate the topic and incorporate unnecessary levels of algebra to prove concepts that can rather be understood through the understanding of accounting.
Happy to hear the series helped!!
My university should just fire all finance professors and play your lectures instead. Crystal clear explanation.
haha thanks :)
Thank you so much for these! I am studying Corporate Finance for CFA level II and these are like life savers! You are so far the best tuitor I have even seen on youtube! Keep your good work going!
Happy the vids helped :)
best teacher existed on earth
Best teacher ever!!! Please continue the good work. You're literally saving lives. I've been stuck trying to understand what my teacher is explaining for half the trimester but then I found you and I've all the stuff clear. Was literally verge of severe mental breakdowns. Thank you for this and everything else! ❤️
dude, you manage to explain the m&m propositions so well. much better than my professor. thank you!
Glad to hear it!
I rarely every comment ever on a video. But I can't resist saying that you are outstanding. MM approach couldn't get clearer. 🙂
thank you :) happy to hear it helped!
Thanks for making the whole MM proposition easier !!
Attended couple of lectures in University but didn't get the rationale behind the MM assumptions ;Now, things are clear and understandable after watching all your videos!
best wishes!!
The whole M&M series has been hugely helpful for me. I've got my CIMA F3 exam on Monday and this has been a lifesaver during my last minute revision - thanks so much!
This is such a concise explanation, and you seem to cover questions that come to a student's mind before we even get the chance to ask them! Better than my proff, thank you!
im so glad i made through all the videos about m&m theyre so useful, love u patrick
Amazing teaching pedagogy and pretty comprehensive content. I am using these videos for my MBA interview prep and they are so useful right now!
Thanks and love from India.
Thank you very much!! Your videos are great, very useful and well explained :)
what a explanation. it easy to understand better than read recommended books and university lecture. thankz a lot brother😎
Hi, Thank you so much! Your videos helped me to understand this topic and pass my midterm. Your videos are so useful and understandable. You’re great!! Wish you all the best!!
This series was absolutely enlightening!! Thank you so much Patrick!!!
happy it helped :)
Bro is a legend, thanks m8 really help me understand the M&M. Churr
you're welcome! Glad to help :)
I usually don't comment on videos but u're amazing!
Thank you so much for this series. This has been insanely helpful.
Thanks Patrick, helped me so much for my exam! Absolute legend :)
Thank you very much! You are a finance GOD!
You explained everything very clearly. Thank you very much!!
thank you so much for this series on MM proposition
Thank you very much :)
Thank's to you I'm learning english and finance at the same time.
U r so good with this keep doing
Thanks!!
Thank you Patrick. It helps a lot on my assignment.
Patrick, Thank You So Much For These Clear Explanations!!
Thank you very much!! great series of videos!
you're welcome :)
These videos were really helpful
Helppp 1:35 i remember you say before fcff/ebit(1-t) is stable why do this exercise say fcff change, and why you subtract 5% from Wacc ???
you are so good, thanks for sharing
These videos are really helpful! Thanks a lot :)
Thank you very much! You are a life saver!
thank you so much for this series!
Very useful video... Thank you so much!!!
Hello, thanks alot for your axplanation.. my queston how can we interpret the result that the share price got increased but in the same time the required rate for return (discorunt rate) got increased. we know according to Gordon model that the share price =D/r, D is divivends anr r is RE (return on equity). so in this equation when RE increase the price share decrease. But according to M M we notice that RE increase (because of increasing debt and risk) but the share price go higher??????
Thank you very much!! God Bless you.
In the last example of part 3, as introduced, value of any firm=FCF/WACC, as FCF and the value of the firm are known, can we just use the formula WACC=FCF/the value of the firm=9.0909% which is the same result with that of you introduced in the video ?
very well explained. thanks so much.
very valuable videos mate
I wonder will the stock price go up after repurchase? Because demand for stock raises and price increases further above 46.4?
So, I tried to check the answer by using the same approach you used at the end of the third video: by dividing FCF/WACC, in this case FCF/(WACC-g) and i found a completely different answer for the firm's value. Did I do something wrong? Or since there's a growth rate the validation is not possible.
Inputs: EV = 185,6 ; D/E = 0,53 ; rD = 0,08 ; t = 0,4
Output: rE = 0,106 ; WACC = 0,086207 and FCF/(WACC - g) = 220,95
I found an EV of 220,95 and not 185,6 as expected.
*To compute rE I used rE = rU + D/E*(rU - rD)*(1-t)
in reality, is that possible for the firm to buy the shares back secretly, i.e with no announcement, so that they only need to pay $40 per share?
How is it possible, that just announcing the news has anything to do with the balance sheet? I mean - I suppose that it can make a difference on the market value of the equity (the share price goes up on the stock exchange), but the balance sheet does not include the market value but the nominal value of the shares sold during the IPO. Let alone - what does it have to do with the value of the assets in the balance sheet? There are receivables, stock, intangible assets and so on - on the assets side of the BS- market fluctuations have nothing to to do with the value of those real world assets, do they?
You did a great thing, thank you so much
It is really useful!!! Thanks!!!
cool videos man, helped a lot. thanks.
U da best sir 🌹thnks a lot!
Thank you Patrick
AWESOME
life saver