Edward Bodmer – Project and Corporate Finance

Resolving BS in Finance

  • Home
  • Project Finance
    • Featured Project Finance and Real Estate Models
      • Energy Project Finance – Solar, Wind, Thermal, Hydro
        • Solar Project Finance Models
        • On-Shore and Off-Shore Wind Project Finance Models
        • Project Finance for Thermal Electricity Plants
        • Hydro Project Finance Models
      • Infrastructure (Toll Roads, Bridges, Air, Sea & Bus Ports)
        • Toll Road Project Finance
        • Sea Port Models
        • Airport Project Finance Models
      • Real Estate (Hotels, Buildings, Mixed Developments)
        • Hotel Project Finance
        • Commercial Real Estate and Lease Roll
        • Residential Real Estate Modelling
        • Mixed Development and Portfolios of Projects
        • Collateral Debt Obligations and Other
      • Resource (Mining, Oil, Agriculture)
        • Mining Models
        • Downstream Oil and LNG
        • Agriculture Project Finance
        • Upstream Oil Project Finance Models
      • PPP’s (Perpetual Pending Projects)
        • Value for Money Analysis
        • Other PPP Examples (Parking and Street Lights)
        • University PPP Examples
      • Other (Paper, Manufacturing, Storage, Shipping)
        • Manufacturing Project Finance
      • Project Finance Credit Analysis Examples
    • Building a Finance Model
      • Project Finance Links and Guide
      • A-Z Project Finance Modelling & Guide
        • Original A-Z (More Basic) Project Finance Modelling
        • Construction Analysis and EPC
        • Operating Tax, Depreciation and Currency Adjustments
        • Debt Service Reserve Accounts
        • Cash Flow Waterfall and Financial Statements
      • Modelling Religion, Criminal Behaviour and Time Lines
        • High Crimes in Project Finance Modelling
        • Flexible Timelines in Project Finance Models
        • Audit Tests in Project Finance Models
        • Structure and Setting-up Order of Modules
        • Sheet Structure in a Financial Model
        • Transparent Formulas in Project Finance Models
        • Model Audits
      • Expiration of NOL in Project Finance
      • Working Capital in Project Finance
      • Learning Crimes from Horrible Models
    • Structuring Debt in Project Finance
      • Structuring Guide No Blah, Blah, Blah
      • Project Finance Theory
      • Debt Sizing
        • Different Debt Size – Cash Flow (P90/P50), Debt/Cap
        • Debt Sizing Philosophy and Debt/Cap vs DSCR
        • Debt Sizing and Cost Padding with Debt/Capital Constraint
        • Taxes, Step-up Margins and Other Debt Sizing Issues
      • Debt Funding
        • Funding of Construction: Pro-Rata versus Equity Up-Front
        • Pre-COD Operating Cash Flow
        • Equity Bridge Loans (EBL)
        • IDC on Subordinated Debt and Project Cost
      • Debt Repayment
        • Sculpted, Annuity and Equal Installment Economics
        • Repayment and Multiple Tier Capacity Payment
        • Reverse Sculpting with O&M Contracts
        • Ballon Payments and Sinking Funds
      • Interest Rates and Fees
        • Theory of Credit Spreads in Project Finance
        • Implied Probability of Default
        • ECA Financing, Premium and Debt IRR
        • Floating and Fixed Interest Rates in Project Finance
        • Interest Rates in Different Currencies and Inflation Rates
      • Credit Protections
        • LLCR and PLCR Complexities and Meaning for Break Even
        • DSRA with DSCR and LLCR
        • Cash Sweep and Risk versus Return
        • DSRA Economics with L/C and Funded
        • Covenants with LLCR and Prospective DSCR
        • Modelling Defaults with Senior and Sub Debt
      • Re-Financing Analysis
        • Mini-Perms and Re-financing
      • Developer Cost, Development Fee, EBL
        • Development Cost Analysis
        • Development Fees, Profit Sharing
      • Actuals, Model Review, Currency, Funds
        • Incorporating Actuals in Project Finance
        • Reviewing Models or Laying on a Bed of Nails
        • Currency Adjustments, Taxes and Debt
        • Monthly Model with Semi-Annual Debt Service
    • Debt Sculpting in Project Finance
      • Sculpting in Project Finance — Part 1
        • Sculpting Basics – Non-Constant Interest Rates
        • Debt to Capital Constraint and Constant DSCR
        • Sculpting and Grace Period
        • Taxes in Sculpting and UDF Functions
        • Multiple Issues and Multiple Currencies
      • Sculpting in Project Finance — Part 2
        • Sculpting and Debt Fees with DSRA L/C Fees
        • Interest Income on the DSRA and Sculpting
        • DSRA Cash Flow Movement and Sculpting
      • Sculpting With Multiple Issues
        • Sculpting with Multiple Issues
        • Separation into Balloon Payment and Sculpting
        • Sculpted and Fixed Repayment Issues
        • Multiple Issues Using SUMIF
      • Sculpting with Debt to Capital, Changing DSCR
        • Sculpting Fixed Debt, Changing DSCR — Simple Case
        • Sculpting Fixed Debt, Goal Seek and Data Table
        • Fixed Debt,Changing DSCR – User Defined Function
        • Multiple Debt Issues, Fixed Debt, Changing DSCR Average Debt Life
      • Funding and Sculpting Exercise
    • Circular Reference and Pain Points
      • Solving the Pain Points in Project Finance Modelling
      • Suite of Circular Reference Solutions
      • Circular Reference with UDF – Basic On-Line Course
        • Implementing the Parallel Model
        • Philosophy of Circular References
        • Writing Your Own UDFs for Circular References
        • Circular Reference – DSRA
        • UDF for Simple IDC
      • Technical Details of Working with the UDF
        • Adjusting Equations and Variables in the Parallel Model
        • Adjusting Reports in Parallel Model
        • Reading Data into UDF
      • Template Circular Reference Solution
        • Pre-COD Financing Issues with UDF
        • Multiple Debt Issues with UDF
        • Complex Sculpting and Sizing Issues with UDF
    • Tax Equity Partnerships and Leases
      • A-Z Tax Equity Modeling
        • Tax Equity Model with Fixed Flip Date
        • Yield Based Flip and Partnership Allocation
        • Detailed Model with Periodic Cash Flows
        • Wind Projects and PAYGO
        • Tax Equity Financing with Bridge Loan and Back Leverage
      • Capital Accounts, DRO’s, Leases
        • Inside Capital Account (704(b))
        • Outside Basis (Tax Basis)
        • Deficit Reduction Obligation
        • Non-Recourse Debt and Minimum Gain
        • Inverted Lease
    • Equity Distribution, Developer Incentive, IRR Issues
      • Performance Incentives for Developers
      • IRR is not B.S
        • McKinsey Critique of IRR is B.S.
        • IRR Mathematics and MIRR Problems
      • Resolution of Problems with IRR
        • IRR with Changing Discount Rates and Assumed Sale
        • Payback Period
        • Alternative to IRR – Weighted Average ROIC
    • Portfolios (Multiple SPV’s and Leases)
      • Overview of Creating Portfolio
      • Macros for Consolidating Projects
      • Lease Analysis
      • Creating a Master Database
      • Financing the Consolidated Portfolio
    • Structuring Contract Incentives and Penalties
      • General Notion of Back-to-Back Contracts
      • Contracts and Risk/Return Tradeoffs in Project Finance
      • Distortions from Contract Penalties and Efficiency
      • Economics of Incentives and Penalties
      • Analysis of Counter-Party
    • Project Finance Theory and Marriage Contracts
    • Torture Chamber Financial Modelling Interviews
  • Corporate Finance
    • Draft of Book About Problems with Finance Theory
    • Featured Corporate Finance Models
      • M&A and LBO Concepts and Featured Models
      • Corporate Models of Crisis, Amazon and A-Z Modelling
      • Model from ROIC and Growth to Derive Value
      • Food and Beverage with Advanced Valuation
      • Air Freight and Corporation as Portfolio of Investments
      • Financial Institution Analysis – Banks and Insurance
      • First Solar Corporate Model and Danger of High ROIC
      • New Store Analysis and Construction Company
      • Other Corporate Models
    • A-Z Step by Step Corporate Model
      • Overview of Corporate Model Theory and Practice
      • Computation of ROIC After Bringing In Data to the Model
      • Assumptions Section of Corporate Model
      • Structure of a Corporate Model
      • Structuring Valuation in Corporate Model
      • Converting Standalone Model to Acquisition Model
    • Building a Corporate Model
      • Corporate Finance Theory and Magic Potion
      • Case Study on Corporate Model
      • Corporate Model Basic A-Z On-Line Course
      • Learning from Horrible Corporate Models
      • Computing NOL with Expiration
      • Annual Sums in Monthly or Quarterly Models
    • M&A Courses and Exercises
      • M&A Course Exercise Files
      • M&A Theory and Analysis
      • Comprehensive Acquisition Modelling Exercise
      • LBO On-Line Course
      • Pro-Forma Balance Sheet Exercise
      • Modelling Tax Issues in M&A
      • Complex Issues in Acquisition Analysis
    • Retrieve Data for Historic Analysis (SEC Method)
      • Acquiring Data for Corporate Model
      • Union Function (UDF)
        • Union Function 1
    • Problems with Models and Valuation
      • Problem 1 – Boring vs Start-up and New Economy
      • Problem 2 – ROIC Measurement and Interpretation
        • Reconciliation of IRR on Investments with Corporate ROI
        • Valuation and Modelling of Financial Institutions and Insurance
        • ROIC Issues and Measurement from Asset Impairment, Service Companies and Dispositions
      • Problem 3 – Depreciation and Changing Growth
        • Depreciation, Asset Vintages and Rates
        • Depreciation in Corporate Models with Changing Growth
        • Economic Depreciation and Reconciling IRR with ROI
    • Problem 4 – Application of Multiples
      • Understanding P/E vs EV/EBITDA Multiples
      • Using the Value Driver Formula to Access Value
    • Problem 5 – Normalised Terminal Cash Flow
      • Stable Terminal Cash Flow in DCF — Working Capital, Taxes and ROIC
      • Normalised Cash Flow in DCF Growth
      • Bridge from Enterprise Value to Equity Value
      • Partial Year Discounting and Timing in DCF Analysis
    • Problem 6 – Value Drivers and Terminal Value
      • Terminal Value, Fade Period and Multiples
      • Bias in McKinsey Value Driver Formula – Change in Growth
      • Biases in McKinsey Formula Part 2 – Inflation Distortions
      • Use of Proofs in Corporate Valuation Analysis
    • Circular References in Corporate Models
    • Hellish Corporate Modelling Interviews
  • Databases
    • Comprehensive Financial Analysis
      • Collecting Ticker Symbols for Financial Analysis
      • Database for Historical Financial Statement
      • Adding Ratios to Financial Analysis Page
      • Search Results
      • Valuation Ratios and Projected Earnings
      • Example with Saudi Stocks
    • Stock Price Database
    • Commodity Price Database Including Futures Download
    • Interest Rate and Credit Spread Analysis from FRED
    • Country Economic Database from FRED
    • Database of Solar Costs
    • Other Database and Retrieval
      • Using Current Currency Database For Invoices etc.
      • Purchasing Power Parity Database and Exchange Rates
    • Mechanics of Creating Databases that Retrieve Data
      • A-Z Course on Reading and Summarising Data
      • On-Line Course for Creating Database from FRED
      • Technical Details for Reading Stock Prices into a Database
      • On-Line Course for Using Webrequest Method
      • Advanced Issues in Creating Economic Databases
      • Finding Data with Range Names in Same Path
    • Statistical Analysis in Finance
      • Excel Forecasting and Exponential Smoothing
      • Autocorrelation in Excel
    • Budgeting Analysis and Pivot Tables
    • Database Analysis VBA
  • Risk Measurment
    • Country Risk Premia (Damodaran)
      • Country Risk Analysis
      • Nestle Country by Country Cost of Capital
      • Soveriegn Debt and Local Debt
      • Implied Default Probability and Actual Probability
    • Equity Cost of Capital
      • General Cost of Capital Principles
      • Introduction to CAPM Problems
      • CAPM Problems – Rf
      • Beta Analysis in CAPM
      • EMRP Issues in CAPM
    • Implied Cost of Capital from Cash Flow Analysis
      • Price to Book Ratio to Derive Cost of Equity
      • Deriving from Price to Earnings
      • Other Sources for Cost of Capital
    • Mean Reversion of Stock Returns
    • Weighted Average Cost of Capital
      • Debt Beta from Credit Spreads Instead of Assuming Zero Debt Beta
      • Proof of Valuation Using Ku or WACC without Interest Tax Shield
      • Resolution of Tax Shield on Interest Expense in WACC
      • WACC Adjustment to Correct Valuation of Tax Shields
    • Credit Spread and Credit Analysis
      • Credit Analysis and Financial Modelling
      • Monte Carlo and Credit Analysis
      • Credit Analysis and Corporate Models
      • Implied Probablity of Default from Credit Spreads
      • Merton Model and Credit Analysis in Project vs Corporate Finance
      • Return on Risk Adjusted Capital for Banks (RORAC)
      • High Credit Spreads and Stealing from Developing Countries
    • Monte Carlo Simulation
      • Adding Monte Carlo Simulation to Models
      • Time Series Distributions and Volatilty
      • Mean Reversion and Time Series Equations
      • Monte Carlo Simulation with Alternative Distributions
      • Correlation Between Variables in Monte Carlo Simulation
      • Replication of Black Scholes with Monte Carlo Simulation
      • Outage Analysis and Monte Carlo Simulation
    • Cases, Book etc.
      • Testimony on Energy and Finance Issues
      • Case Studies of Failed Project and Corporate Finance Investments
      • Dabhol – IPP Analysis and Project Finance
      • Corporate Finance Case Study – First Solar in 2010
      • Project Finance Model Case Study of Solar
      • Housing Values, Loans and Structured Finance in U.S. Housing Crisis
      • Petrozuata – Oil Project Finance
      • New Book
      • Slides Used in Project Finance and Corporate Finance Analysis
    • Swaps, Options and Futures
    • Expert Testimony
      • Cost of Capital Testimony
      • Testimony on Cost of Service and Rate Design
      • Generation Companies
      • Forecasting and Statistical Analysis
      • Testimony on Productivity
      • Testimony on Project Finance
  • Energy Analysis
    • Renewable Resource Analysis (Solar, Wind, Hydro)
      • Solar Financial Resource Analysis and LCOE
      • Solar Uncertainty Analysis (P90, P95 etc.)
      • Wind Financial Resource Analysis with Power Curves
      • Wind P99, P90, P50 (1-year, 10-year) and Debt Sizing
      • Wind Power and Merchant Prices
      • Hydro Resource Analysis and Power Equation from Gravity
      • Storage Hydro Peak Shaving
      • Analysis of Actual Variation in Hydro, Wind and Solar Production
      • Biomass and Biogas Analysis
    • Worldwide Merchant Electricity Prices
      • Philippines Merchant Electricity Prices: WESM
      • Nord Pool Merchant Electricity Prices
      • Turkey Merchant Prices
      • UK Merchant Prices
      • German Merchant Electricity Prices
      • U.S. Merchant Electricity Prices
      • Electricity Merchant Prices from ISO’s
      • Australia Merchant Electricity Prices
      • Korea Merchant Electricity Prices
      • Merchant Capacity Prices
    • Levelised Cost of Energy and Carrying Charges
      • Introduction: Four Methods
      • LCOE and Value Drivers
      • Real Levelised Cost and Inflaton
      • Levelised Cost and Degradation
      • Levelised Cost and Taxes
      • Levelised Cost and Capital Replacements
      • Levelised Cost and Construction Timing
      • Levelised Cost and Debt Financing
      • LCOE Database
    • Battery and Storage Analysis
      • Introduction to Battery Analysis (kWh versus kW)
      • Battery as Merchant Peaker
      • Microgrid Analysis with Battery – Version 2.0
      • Retail Rate Analysis of Batteries and Solar
      • Battery Analysis and Carrying Charges
      • Battery Characteristics
      • Microgrid Anaysis with Battery – Version 1.0
      • Storage from Batteries and Ancillary Services
      • Mini-Grid A-Z Model
    • Marginal Cost of Electricity and Evaluation of Strategy
      • Short-term Marginal Cost Presentation and Analysis
      • Long-term Marginal Cost and Load Duration Curve
      • Demand Analysis and Hourly Simulation
      • Conversions and Heat Rates
      • Outage Analysis and Monte Carlo Simulation
      • Market Price C++ Model
    • Mini Grid and Solar Rooftop
      • Microgrid Demand and Supply
      • Battery and Solar Home Systems versus Kerosene
      • Solar Roof-top On-Line Course
    • Analysis of Upstream Oil and Gas
      • Production Sharing Agreements
      • Reserve Based Loans
    • Hydrogen Analysis
      • Overview of Hydrogen
      • Storage, Compression, Dispensing and Distribution Cost
      • Vehicle Analysis with Hydrogen versus Other Energy
      • Hydrogen in the Context of Electricity System
    • Solar, Battery, Hydrogen Course
  • Excel and VBA
    • Heavy Financial Models
    • Read PDF to Excel
      • Using Read PDF
      • Union UDF & Master List
      • VBA Explanation
      • European Numbers
      • A-Z Case 1
      • A-Z Case 2
    • Generic Macros File (Colouring and Copy to Right)
      • Formatting Sheets (CNTL,ALT,C)
      • Copy to the Right (SHIFT,CNTL,R)
      • Finding No Dependent and Transfers
      • Additional Short-Cuts
      • Re-setting your Model
      • Sheet Name Remove
      • External Link Find
      • Delete Blank Row
      • VBA Explanations
    • Formula Evaluation with ALT, u
    • UDF Functions for Financial Models
      • Payback UDF
      • Sum #NA etc.
      • Maxif and Minif
      • XMIRR UDF
      • Volatility UDF
      • Depreciation Vintage UDF Function
      • Find Month
      • End of Quarter UDF
      • Dynamic Goal Seek
      • Repayment Function..Varying Rates
      • Match with Partial Titles
      • Resolving Millions, Billions in MarketWatch
    • Interpolate-Lookup Function
    • Spinner Boxes, Dropdown Boxes and Other Forms
    • Useful Short-Cuts, Creating Your Own Short-Cuts, Macros
    • Table of Contents Marco and Hyper Link Macros
    • Goal Seek Macro – Your First
    • Adding UserForms
    • Finding Circular References
    • CNTL TAB Fix
  • Scenarios & Graphs
    • Data Tables
      • Basic Data Tables
      • Better Data Tables with VBA
      • Data Tables and Goal Seek
    • Scenarios
      • Index/Data Table Scenarios
      • Scenarios and Spinners
      • Using Scenario Reporter
    • Tornado and Spider Diagrams
      • Tornado Fundamentals
      • Advanced Tornadoes
      • Spider Diagrams
    • Dynamic Graphs
      • Index and Spinner Blank Skip
      • #NA Trick and Flexible x-Scale
      • Offset and Dynamic Ranges
    • List Boxes, Check Boxes, #NA Fix
      • List Boxes and Multiple Series
      • Fixing #N/A Multiple Series
      • Multiple Check Boxes
    • Waterfall Chart Templates
    • Scatter Plots and Bubble Diagrams
    • Football Field Diagrams
    • Graphing Step Changes
  • Course
    • Exercises for Project Finance Modelling Class
    • Exercises for Renewable Energy Course
    • Exercises for Modelling Tax Equity

Renewable and Conventional Energy

 

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