Thanks all for your kind comments. Some have asked for the Excel file, which I think defeats the purpose of this presentation. To replicate the analysis, simply retype the input data and only the first column of data...takes no more than 5 minutes; and then perform the analysis.
Hello Pat. Great lesson! Question: If interest rate on all debt is 12% and total debt is $20,000 why is the interest expense $510 for both the current and forecast year? Thanks
Hi Derek, I sincerely apologize for the very late response. I should check in more often :-) You're right in your observation. However every forecasting problem may have specific info to go by. In this problem, $510 is the current debt balance (from previous years) which must be carried over into the forecast period - unless we're informed differently. Also to be clear, the firm's current interest-bearing debt is actually not $20,000 but instead $9,000 (s.t. debt + mortgage bonds). Please let me know if you have further questions. Thanks for watching :-)
Would it be helpful to calculate the net present value of the AFN which is 754, at 0,125 borrowing rate? Perhaps we can have better understanding of the cost needed to borrow the required AFN. Best
Thanks so much for your interest in this video. I'm sorry, I no longer have the spreadsheet file. But you can easily replicate the analysis by utilizing the input and column 1 data on the spreadsheet.
Hi Pat, thanks for the video! Quick question- at the end, we determined the self-sustaining growth rate which would the maximum sales growth the company could achieve without dipping into debt. However, to support sales growth, you'd need additional assets to support it, which would need further financing through debt or equity. Since this company has excess equity, could they not use that to finance the required assets to support sales growth? Thanks :)
You're correct, additional financing may come from either debt or equity - depending on the firm's financing or perhaps even, capital structure, policy. Note that additional financing in this respect is from EXTERNAL sources: new borrowing and new equity, since retained earnings have already been factored into the analysis. Finally, the equity you see on a firm's balance sheet (as in this example) is not "excess" but rather equity balance. Hope this helps.
I can't believe you responded!!! I am doing my thesis for my masters. I need to forecast sales. I have never taken a finance class on forecasting before. Can you help? I can provide my phone number in an email if you can call me please I am struggling greatly! I can pay you as well for your time though my budget is limited as a college student.
@@PatObi thank you, this tempt me to dig further. I just cant understand if our assets exceed liabilities, why do we instead need additional funding? will the asset cover the liabilities in the spreadsheet scenario?
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A Nigerian brother doing something beautiful, thanks Obi
Thanks all for your kind comments. Some have asked for the Excel file, which I think defeats the purpose of this presentation. To replicate the analysis, simply retype the input data and only the first column of data...takes no more than 5 minutes; and then perform the analysis.
It would save me 5 min with your Excel file ;-)
Thank you so much Pat, I haven't seen any other video here explaining Fp and a well than this.
how?
Impressive! Thanks so much Prof Obi.
How can I calculate "G" if I am doing manually .
You mean growth rate (g)?
@@PatObi how?
Please be clear and concise with your questions. I can't give a response unless I understand your questions. Thanks.
a simple and yet great video
Thanks
Nice presentation, keep it up. Thank you very much.
Thank you Mr. Pat Obi.
Hello Pat. Great lesson!
Question: If interest rate on all debt is 12% and total debt is $20,000 why is the interest expense $510 for both the current and forecast year? Thanks
Hi Derek, I sincerely apologize for the very late response. I should check in more often :-) You're right in your observation. However every forecasting problem may have specific info to go by. In this problem, $510 is the current debt balance (from previous years) which must be carried over into the forecast period - unless we're informed differently. Also to be clear, the firm's current interest-bearing debt is actually not $20,000 but instead $9,000 (s.t. debt + mortgage bonds). Please let me know if you have further questions. Thanks for watching :-)
i have a question Pat but i noticed you have not been on line for a long time
If you write me I'll respond :-)
Pat Obi great could you please share the excel sheet
Hello is it okay that forecasted balance sheet is not balance?
Great lessons. Thanks Prof.
Awesome Information 👌👏👏
Would it be helpful to calculate the net present value of the AFN which is 754, at 0,125 borrowing rate?
Perhaps we can have better understanding of the cost needed to borrow the required AFN.
Best
Could you share this template? Thank you for the video.
Sir how can i got that excell sheet format
Thanks Pat. About to start a new media company. this was quite useful.
Pat could you please share the excel file u used. Thnaks a million
Could you share with me the file of this show? Thank you so much in advance.
Thanks so much for your interest in this video. I'm sorry, I no longer have the spreadsheet file. But you can easily replicate the analysis by utilizing the input and column 1 data on the spreadsheet.
Your percentages in the top left corner. How did you come to those percentages?
They're given in the problem
This is great. I am doing see forcasting for a turnaround company now. Happy to make our own but do you happen to have a template?
can you share the excel sheet for me?thank you.
Very useful thanks .....We need more videos about forecasting and budgeting and plz add the excel file
Hi Pat. Greetings from Africa. Great Video. Thank you. Where can I upload the data Excel? I want to reedit the exercise by myself. Thank you.
Can you please upload the excel document that you used. That would be huge!!
Thank you so much for doing this.
Great explanation... Can you please share the excel copy of this??
Nothing to share, really. Simply type the input and Current Year data to recreate the analysis. Takes < 5 mins to type out the input :-)
Hi Pat, thanks for the video! Quick question- at the end, we determined the self-sustaining growth rate which would the maximum sales growth the company could achieve without dipping into debt. However, to support sales growth, you'd need additional assets to support it, which would need further financing through debt or equity. Since this company has excess equity, could they not use that to finance the required assets to support sales growth? Thanks :)
You're correct, additional financing may come from either debt or equity - depending on the firm's financing or perhaps even, capital structure, policy. Note that additional financing in this respect is from EXTERNAL sources: new borrowing and new equity, since retained earnings have already been factored into the analysis. Finally, the equity you see on a firm's balance sheet (as in this example) is not "excess" but rather equity balance. Hope this helps.
If the assets is higher then liabilities - doesn't it means that we dont require AFN?
kalpesh kashyap: Yes, you do not need additional funds
I think you need additional funding to finance the gap in assets.
Thanks for the video
Kindly could you please share the excel sheet on Dropbox Thanks
I am from nepal lesson is impresive and how can i got excell sheet
It would be great to add file in the description box😊😊😊
Hi Pat. Would you like to share your template please?
Hi are you available now? I know this video is old but is very relevant to my current project.
1JayVon: how may I help?
I can't believe you responded!!! I am doing my thesis for my masters. I need to forecast sales. I have never taken a finance class on forecasting before. Can you help? I can provide my phone number in an email if you can call me please I am struggling greatly! I can pay you as well for your time though my budget is limited as a college student.
1JayVon: For sales forecasting, you could try Moving Average method. I have a demo on UA-cam.
I will give that a shot.
Great insight, thanks for sharing.
that was very useful. thank you
Thanks Prof
♥️😊👍🏻
can i get excel sheet for the above ?
Oh I wish I had the file used so after viewing this applicable video, the learning experience lingers longer
You can easily build the file yourself. All you have to do is enter only the input data. It's a learning video :)
@@PatObi thank you, this tempt me to dig further. I just cant understand if our assets exceed liabilities, why do we instead need additional funding? will the asset cover the liabilities in the spreadsheet scenario?
thanks prof pat obi
thanks for your effort very useful .......please share the file if it possible
thank u so mush
Lets try ourself
Pliz speak in sanskrit
How can I calculate the growth rate (g*) manually?
Two common methods: Calculate the avg revenue growth rate or compound growth rate using past 3 to 5-year data, if using annual data.
Hi
Thanks for the video
Kindly could you please share the excel sheet on Dropbox Thanks