Wall Street Prep

Modeling stock based compensation

Q: I was just told that it is common in the software industry to exclude stock-based compensation (SBC) expense from earnings per share (EPS), effectively treating it as a non-recurring item. I understand that stock based compensation is a non cash expense ... Read More

M&A Accounting in Simple English

Acquisition accounting has always been a challenge for analysts and associates.  I think it's partly because the presentation of purchase accounting (the method prescribed under US GAAP and IFRS for handling acquisitions) in financial models conflates several accounting adjustments, so ... Read More

Differences between the LBO, Bank Modeling, and Premium Package

A: The Premium Package includes a comprehensive LBO section (over 300 pages of step-by-step guidance along with model templates and video instruction). The LBO treatment in the premium package is more than sufficient for the vast majority of users. However, ... Read More

Will Wall Street Prep Help Me Get Into Investment Banking?

A: The program is designed to enhance the competitive profile of people pursuing careers in investment banking, private equity, equity research, business development and corporate finance – those are the kinds of jobs that our trainees get after going through ... Read More

Boost Add-In for Excel Now Available

As of June 1, 2018, Boost is no longer in development. Wall Street Prep customers who purchase a qualifying self-study course or enrollment to a boot camp will instead get free 6-month access to the full Macabacus productivity add-in. The ... Read More

Calculating SG&A margin in the Colgate case study

A: Here is the calculation: Pre-Tax Minority Interest 57.5 Pre-Tax Equity in Affiliates (3.4) Net Impact on Expense $54.1 Expense as a % of sales   $54.1/12,237.7 = 0.0044 or 0.44%

Modeling effective vs marginal tax rates

A: Marginal tax rate refers to the rate that is applied to the last dollar of a company's taxable income, based on the statutory tax rate of the relevant jurisdiction, which is partly based on which tax bracket the company ... Read More

Does Wall Street Prep provide financial modeling courses for overseas applicants?

Note: This article is outdated, as the Premium Package is now an online-only video training program. A: Thank you for your inquiry. The Premium Package comes as physical manuals, along with a CD containing the model templates and supporting documents. ... Read More

Financial Modeling Techniques: Sensitivity Analysis ("What if" Analysis)

A financial model is a great way to assess the performance of a business on both a historical and projected basis. It provides a way for the analyst to organize a business’s operations and analyze the results in both a ... Read More

Financial Modeling Techniques: Index & Match

In a prior post, I discussed scenario analysis using the OFFSET function. Today I would like to introduce you to two useful formulas, the “Index” and “Match” functions, which can actually be combined to create an even more useful “super” ... Read More

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The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.