Undergraduate Finance Lecture at Purdue University Northwest.

30 replies
  1. derek allan
    derek allan says:

    Hello Pat. Great lesson!
    Question: If interest rate on all debt is 12% and total debt is $20,000 why is the interest expense $510 for both the current and forecast year? Thanks

    Reply
  2. Pat Obi
    Pat Obi says:

    Thanks all for your kind comments. Some have asked for the Excel file, which I think defeats the purpose of this presentation. To replicate the analysis, simply retype the input data and only the first column of data…takes no more than 5 minutes; and then perform the analysis.

    Reply
  3. Nicole K
    Nicole K says:

    Hi Pat, thanks for the video! Quick question- at the end, we determined the self-sustaining growth rate which would the maximum sales growth the company could achieve without dipping into debt. However, to support sales growth, you'd need additional assets to support it, which would need further financing through debt or equity. Since this company has excess equity, could they not use that to finance the required assets to support sales growth? Thanks 🙂

    Reply

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