Debt modelling 6: Debt sizing & debt sculpting
Using debt service coverage ratio to determine debt capacity.
Topic
Financial Modelling Handbook
How to build a three statement financial model from scratch.
Debt modelling 5: Debt service coverage ratio
All lenders seek to understand and quantify the ability of the borrower to repay their debt.
Debt modelling 4: Modelling amortising principal repayment using the sum of discount factors method.
It looks like this section gets the prize for the longest chapter title.
How debt repayment profiles affect IRR
We have now seen that both the amount of debt and the cost of debt will impact the equity IRR. The repayment profile of the debt will also have an impact.
Debt modelling 3: Modelling interest
All debt interest is calculated as a rate multiplied by a balance. Always. The complexity is "what is the correct rate" and "what is the correct balance".
How has leverage changed IRR?
Corporate finance 101.
Debt modelling 2: Straight-line principal repayment
Modelling the straight-line principal repayment of debt is like modelling straight-line depreciation.
Debt modelling 1: Balance and initial drawdown
By breaking down the debt modelling process into small steps I’m hoping to show that it’s more straightforward than you might expect.
Debt modelling: Concepts & assignment
We have until now assumed that business will be 100% equity funded. It's time to change this.
Share capital redemption
What's the value of $100m in 25 years?