Hey everyone, check out my website www.FIN401.com to see more of my videos on Capital Structure.
@ΑντρεαςΚ-ω7κ3 жыл бұрын
how can show that the share price is constant when the firm repurchanging shares( no taxes)?
@amoszahir73463 жыл бұрын
I dont mean to be off topic but does anybody know a tool to get back into an Instagram account? I stupidly forgot my password. I would appreciate any assistance you can give me!
@westleyleonardo14733 жыл бұрын
@Amos Zahir instablaster =)
@amoszahir73463 жыл бұрын
@Westley Leonardo I really appreciate your reply. I found the site on google and I'm trying it out atm. Looks like it's gonna take quite some time so I will get back to you later with my results.
@amoszahir73463 жыл бұрын
@Westley Leonardo it worked and I now got access to my account again. I'm so happy:D Thank you so much you saved my account :D
@missmokkori55584 жыл бұрын
This guy has literally saved my semester 🙏
@Manuel-gk3rv2 жыл бұрын
This series about M&M is literally the main reason I passed my exam today. Thank you so much man!
@dakshan5 жыл бұрын
I passed my finance final thanks to you! You're the man! Thank you so much Patrick
@mudassarhossain8956 Жыл бұрын
What are you studying
@African5078 ай бұрын
You're the best Patrick! Thank you so much for posting these videos, they are lifesavers!!
@hyong-qc3ss6 жыл бұрын
you sir, have an awesome way of explaining your class!!!
@saltywater62582 жыл бұрын
Why don’t teachers explain things like this gentleman, believe you deserve to teach in top universities not in KZbin, thumps up and sub
@nerminmohamed98462 жыл бұрын
You are an amazing professor ... really .. simple and valued
@andrewday50633 жыл бұрын
Thank you for the excellent explanation of this concept! I'm watching all your videos on finance now.
@saajidahtajuddin26354 жыл бұрын
I have an online exam since uni is shut down due to the virus. rewatching the lecture podcast didn't do much help to me so THANK YOU SIR your videos help a lot
@heathercandido57765 жыл бұрын
seriously helping me pass my MBA corporate Finance class!!! Thank you so much!
@AllThingsMathematics5 жыл бұрын
No worries :))
@carolinegauthier4 жыл бұрын
same :)
@hanakawatin75492 жыл бұрын
Clear message, clear structure, easy to understand, thank you
@l.h.7262 Жыл бұрын
just discovered your videos. I am learning more with you than my professor!! Thank you!
@Peach-ui3dy3 жыл бұрын
If I pass the midterm Finance exam, it's because of you Hahaha Thank you so much!
@mohammedsanisuleiman61594 жыл бұрын
You are excellent Patrick...
@AllThingsMathematics4 жыл бұрын
Thank you :)
@danisumawijaya76344 жыл бұрын
this guy explains it better than my professor who is a CFA
@rachelmin010510 ай бұрын
this is so clear, thank you!
@lyndaromana47845 жыл бұрын
Saved me for my exam I was doomed to fail!! Haha thanks man
@jeffreyzheng20104 жыл бұрын
crystal clear explanations. thanks, Sir!
@amarbaperchannel2 жыл бұрын
Thanks Sir🥰 from India
@nicos.12003 жыл бұрын
Great video, great explanations. Thanks
@franco80192 жыл бұрын
Awesome sur tomorrow i have exam i hope i may to manage with such kind of question in exam if i'll face with them :)
@kgh20157 жыл бұрын
Thank you so much for these videos. All of your videos are great!
@enea59566 жыл бұрын
this videos are well done, everything is clear. great job.
@mustafarizvi38343 жыл бұрын
Many thanks, Brother ...
@AllThingsMathematics3 жыл бұрын
you're welcome :)
@tillypan83366 жыл бұрын
thank you so much for your teaching.
@gracecalubaquib81733 жыл бұрын
very well explained thanks!
@AllThingsMathematics3 жыл бұрын
You're welcome!
@zoeynotzoeh80364 жыл бұрын
man!! you are soo good. It's really helpful thxxxx
@sharonarandia36303 жыл бұрын
Niiiiiice video
@AllThingsMathematics3 жыл бұрын
thanks :)
@gracelee13815 жыл бұрын
Perfect explanation! Thank you so much!!!
@diegocaizatoabenavidestran81424 жыл бұрын
Greetings from Chile! U helped me a lot!
@mrsyk936 жыл бұрын
You saved my life
@NiinyTV2 ай бұрын
This guy is good 😊 thanks
@AllThingsMathematicsАй бұрын
thanks :)
@masoudnoordeh4276 Жыл бұрын
Great job,thanks.
@nwanneelizabeth80392 жыл бұрын
Simple explanation
@mindstorm19984 жыл бұрын
Bro you came in clutch!
@appygao86737 жыл бұрын
Great, your explanation rocks!
@ponisaseaside34565 жыл бұрын
omg Patrick! Thank you so much !! you've literally saved my life!
@nickno29805 ай бұрын
Thank you so much :)
@martin-georgiev5 жыл бұрын
Thanks bro for the lecture. Much appreciated!
@tongtongli41416 жыл бұрын
Thank you for doing this!
@meymunaali78504 жыл бұрын
What a great Vedio.thank you so much
@marianavargas66605 жыл бұрын
This helped so much! Thank you!!!!!!!
@chenchiq80733 жыл бұрын
this guy is a god
@AllThingsMathematics3 жыл бұрын
Thanks!
@benjaminkjaerhansen473311 ай бұрын
does homemade leverage work when there is no tax
@stanley6909256 жыл бұрын
Awesome video. Thank you
@colinchan7906 жыл бұрын
Great explanation, thank you!!!
@juliakapiska66735 жыл бұрын
very good explanation :)
@aklimakanzhigit6 жыл бұрын
Thank you so much for the video!
@KarryGao97 жыл бұрын
Thanks a lot for this helpful video!
@thanhvannguyen97279 ай бұрын
Thanks mate
@yefaobeng49364 жыл бұрын
Interesting topic although I’ve few doubts: 1- The repurchase of shares comes when there are shares out in the market and from the example this is not shown. 2- A part from this the demonstration looks wired: if I take on debt I will have more cash in my assets taking the 300K up to 420K. My equity will remain the same 300K (no dilution or accretion is fine) and debt will increase to 120K. The value of the company will stay the same because EV = Equity + Net debt so 300 + ( 120 - 120 ). Does it sound fair??
@aieshijain4 жыл бұрын
1. The repurchase is happening because there are 50,000 shares outstanding in the market. Shares are being repurchased from these. 2. It does rise from 300K to 420K. However, the very rule of MM1 (without taxes) is that the value of the firm remains constant when it becomes levered from being unlevered. Vu = VL. Hence, the 120K rise in firm value due to the debt is actually compensated by the fall in equity value so that the overall asset value stays constant. Hope this helps!
@yefaobeng49364 жыл бұрын
@@aieshijain Thank you for the reply. First of all mine it's just a shared though. 1. Good to know about the shares because this was not stated. 2. I completely agree with you as well as the MM1 theorem: I believe the first assumption of MM is met since the value of the firm does not change and this is not because the value of the equity decreases unless the company is in a distress situation. Hence 420 on the asset side and the 300 + 120 on the Equity & Liability still holds since the value of the firm will be EV = Equity + Net debt so that 300 + ( 120 - 120 ) = 300. Here it comes the second theorem of MM that states that the debt is increasing the risk of the Equity holders so what the change will be the return on equity and not the value of the Equity per se. Moreover, the increase in debt is not having a dilutive effect on Equity, in this case if the value of equity decreases and the shares + the 50 new will create a dilution effect. Do you agree on that?
@maricelagutierrez8163 жыл бұрын
@@aieshijain I was confused too still am but just a lil. Thanks
@selamawitchanie58304 жыл бұрын
Good expression God bless u
@hihohiho94556 жыл бұрын
Well explained. Thank you!
@vishuraja256 жыл бұрын
What about the interest payments that arise with debt? Where do they go in balance sheet and don't they affect the market value of the company?
@AllThingsMathematics6 жыл бұрын
Hi Raja, couple of things: 1) interest payments go on the income statement, not the balance sheet 2) interest payments affect the value of a company when there are taxes, because they are tax deductible and reduce taxes to be paid (or increase tax shield). If you see my videos on M&M (with taxes), I go into more detail on this.
@yashshah43072 жыл бұрын
🐐💪🏾
@HuongNguyen-vc5lf4 жыл бұрын
If you borrow debt to repurchase shares and the debt has an interest, how it is gonna change the debt and equity? total debts =($120000+ interest), and Equity= Total assets - total debts. Is that correct?
@bhubesinyama8746 жыл бұрын
Well explained, thanks man
@huseyinkamilgezginci7915 жыл бұрын
Thx, saved my back!!
@OlgaBergInternational11 ай бұрын
I do not understand why we are dividing 300 000 by 50 000. These are outstanding shares, we do not know how many shares within 300 000, correct?
@Anglepaat5 жыл бұрын
Good Afternoon sir, but does the assumption that share prices is constant only apply if the debt does not have an interest payment?
@shewanesgetiye55922 жыл бұрын
nice presentation but please Mr. when you doing videos please put part by part or simply say part 1, part2 ........................
@donif.61935 жыл бұрын
Damn Bro, that's too good.
@abuhanifkhan1670 Жыл бұрын
Pls give a video on Deferred Tax
@amnasarosh56114 жыл бұрын
Can u please tell me what are your video settings on ur dslr camera
@lloloa97065 жыл бұрын
I honestly want to know why those stupid so called professors don’t know how to explain things????not just that they confuse you and make it harder... i have a professor 🤓 who says you add this by this add this by that !! What the hell is this and that seriously!!!anyway you are 100000 better than my professor thank you
@weightycarlos3 жыл бұрын
I can't believe I'm going to report this...
@ary__land95103 жыл бұрын
Please how did you get the $6?
@KENZOkm6 жыл бұрын
So does the company own the 20,000 shares and the other 30,000 are public?
@eng.abdulrahmanalotaibi2397 Жыл бұрын
you are smart
@Humble_African3 жыл бұрын
God sent!
@ravindranpillai51553 жыл бұрын
U look cool for a finance guy...😀
@sidraqayyum2303 жыл бұрын
Thanks
@monikasuryawanshi78976 жыл бұрын
Good job
@batatambor6 жыл бұрын
I dont quite understand how you are relating Assets' book value to company's value, since company value is related to discounted cashflows and assets' value is related to accounting value at the balance sheet. That said equity book value for a 100% equity firm doesn't translate the market value of the firm. In the exemple you gave, if a company borrows 120 of debt to buyback shares, in the balance sheet you will have equity book value (that does not necessarily match up equity market value) and debt book value (that actually match up current share's market value). How are we supposed to deal with that?
@AllThingsMathematics6 жыл бұрын
Hi Ricardo, that's a good and fair question. I'm assuming that all values on the "balance sheets" in the video are Market Value. Yes, balance sheets are usually based on book value, but think of these as like "market value balance sheets". So the Assets, Debt and Equity are always based on market value. I could've mentioned that in the video to clarify. Thanks for bringing it to my attention.
@batatambor6 жыл бұрын
Thank you for replying
@emmanuelasantesaforo80845 жыл бұрын
@@batatambor Good info ... thanks this have really help
@naveenverma84706 жыл бұрын
Sir what is assumption of this
@mandarin4086 жыл бұрын
Nice! Thank you.
@rajs20505 жыл бұрын
Thank you!!!!!!!!!!!!!!!!!!!!!!!!
@yejin53154 жыл бұрын
How come you said market value = company asset value ??? Asset value should be equals to book value.
@iqramehmood44333 жыл бұрын
Great
@ninabrdh86254 жыл бұрын
😍😍
@florisvanderveen27776 жыл бұрын
AWESOME!!
@BanteAlemayehu10 ай бұрын
If you give me the material
@lucasmoratoaraujo84332 жыл бұрын
This guy seems like he is about to cover some eminem, and, come to think about it, he does.
@mishadaro97593 жыл бұрын
I didn't understand why assets are still 300k after borrowing money. Let's suppose I have 5 bucks and I borrow another 5 bucks. That means I have 10 bucks, so my assets are 10 bucks. Isn't this how money works?
@themazmagmon5 жыл бұрын
nice, nice, nice
@GoldSK965 жыл бұрын
Come teach at my university
@asinicalnarcissist95203 жыл бұрын
imma fail my unit this is hard as fk
@DC-se3vr5 жыл бұрын
Omg you’re cute 😁
@nathan-vm4ss3 жыл бұрын
This dude dresses like the local drug dealer in the hood but once he opens his mouth be instantly becomes a business prof
@satchelziffer81565 жыл бұрын
You look like Justin Bieber, but anyways, great vid.