A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • 5 years ago

I have a question regarding working capital and DCF valuation. Let's so you're trying to value a carveout of a parent company, and for valuation purposes you consider working capital to be AR, Inv., and AP. Suppose the carve-out balance sheet shows intercompany receivables and payables, in addition to normal trade receiveables and payables. Should those intercompany balances be included in your calculation?? Thanks!

  • This Question is Closed
  1. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    no Intercompany Data should not be included

  2. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    The Logic is that , while consolidation the financial statements of the company and its subsidiary,these datas are taken care of.Hence Normal trade paybles and receivable should be used...'' U r Welcome

  3. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.