标题: debt ratio in forcasting [打印本页] 作者: therecruit 时间: 2011-7-11 19:23 标题: debt ratio in forcasting
page 414 in equity
net borrowing= dr(fcINV-dep)+dr(wcINV)
does anyone know why we are assuming that only the incremental fixed cap will be financed according to the debt ratio, why not all of it according to the debt ratio....
i am thinking because assets that have been used up should be replaced by equity holders in order to maintain same d/e since basiclly they own those assets and it is their assets that have lost value
ie we are assuming that accounting depreciation is REAL depreciation
i hope someone has a better reasoning, or at least can tell me that mine makes sense...
regards,作者: firat 时间: 2011-7-11 19:23
i agree with you.作者: jacksparrow 时间: 2011-7-11 19:23
you're so smart gulf.....I guess just think you have to use NET FCinv which is just PP&E or something so gotta depreciate them.作者: Rasec 时间: 2011-7-11 19:23
andrew my friend, long time no see, how you holding ? i am spending most of my days studying and getting drunk....i guess i can do that since i am unemployed, let us just hope i have enough brain cells left on june 4th
