Financial Modeling Quick Lesson: Accretion / Dilution - Part 1

[@chazbasra]

Hey great video, I have a quick question for clarity though. How come we have to dilute and amoritize Asset write-up expenses and where would that go (income statement? Balance sheet? Cash flows?) Thank you!

[@jd5787]

Is the financing fee levied by the bankers still capitalized and amortized over time?

[@wallstreetprep]

Not anymore. It is treated as a debt contra item and amortized within interest expense. Here is a full breakdown we wrote about it: www.wallstreetprep.com/knowledge/debt-accounting-treatment-financing-fees/

[@jd5787]

@@wallstreetprep thank you!