how can u simply add the synergies to 10% and apply it to the total revenue !!! shouldn't each revenue stream be calculated separately taking into consideration the respective increase % due to the synergies .. i would still give the same recommendations as the candidate to go for the investment because the snergies increased the value above the investment, but the amount is definitely different than what she calculated
@ryanallred9800
Жыл бұрын
you are so right. I thought the same thing!
@dasfreutmich1
Жыл бұрын
I agree. Revenue by synergy calculation is incorrect. those percentages should have been applied individually to each revenue stream and then all updated revenue streams should have been added up
@erere9724
Жыл бұрын
@@dasfreutmich1 The label on the chart shows that the percentages represent potential to boost TOTAL revnue.
@shaikguljaha4884
11 ай бұрын
@@erere9724 Ohhh Did not notice that, that actually saves a lot of time of the calculation. Thanks for the clarification
@razni06
11 ай бұрын
did you by any chance understand how she calculated the 10 millions of costs when analysing that chart ?
@jbhalloran528
Жыл бұрын
Is it recommended to still walk through the math out loud even if the calculations were fairly easy as in this video?
@1Piece_Luffy
Жыл бұрын
Yes. Read out the name of the costs first so that your initial equation can be checked with the interviewer. However, I usually ask, "Can I finish the computation and tell you the answer?" This is usually okay and desirable.
@razni06
11 ай бұрын
can someone explain how she came up with the 10 millions costs from the chart ?
@melmanthemadman
8 ай бұрын
the difference in marketing and sales cost between philly and league is 10 million (180 million for Philly and 170 million for league), using comp as bench mark there is potential room to lower cost down to league teams marketing and sales
@paulnunez3552
Жыл бұрын
Can someone further explain the discount rate?
@clintonng7086
Жыл бұрын
Yeah the overall case was easy to follow except this
@sofiadobbertin5214
Жыл бұрын
I think it's about calculating the current value of the company. I.e. they assume that the baseball team will also make 100 million in profit in the future. But 100 million in the future has a different value today, therefore the discount rate is applied to it. 100 million divided by 0.1 gives 1 billion. So the investment today is worth 1 billion.
@sofiadobbertin5214
Жыл бұрын
Please correct me if I'm wrong lol
@1Piece_Luffy
Жыл бұрын
In the industry, we use the term "multiple" because, as you said, the term discount rate can be misleading. In this case, I would've asked "What is the multiple I can use? x10?". This basically means that the life expected of an asset is 10 years, adjusted to the time value of money or whatsoever. It is a powerful benchmark to easily derive a firm's value.
@dasfreutmich1
Жыл бұрын
@@sofiadobbertin5214 Shouldnt Future Value be divided by (1+r) and not r if you are trying calculate the present value? The direct division by 10% was confusing to me.
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