lease_adjustment: Calculate lease adjustment to EBIT

View source: R/valuation_funs.R

lease_adjustmentR Documentation

Calculate lease adjustment to EBIT

Description

Calculate lease adjustment to EBIT (for ROIC calculation).

Usage

lease_adjustment(current_lease, debt_value_lease, lease_embedded_years)

Arguments

current_lease

Number Current lease expenses

debt_value_lease

Number Capitalized leases

lease_embedded_years

Number Embedded years in leases

Value

Number Lease adjustment for EBIT

Examples

# See get_leases function output for debt_value_lease and lease_embedded_years
# Current year leases
# current_lease <- 555
# Paid leases 5Y in the future
# cash_flow <- list(y1=333, y2=444, y3=444, y4=555, y5=666)
# Paid leases beyond 5Y
# beyond <- 45555
# Indicate the cost of debt (firm rating OR synthetic rating)
# cost_debt <- 0.05
# Capitalize future leases
# cap_leases <- get_leases(cash_flow, beyond, cost_debt)
# lease_adj <- lease_adjustment(current_lease, cap_leases$debt_value_lease, cap_leases$years_embedded)

TracyRage/fun_valuation documentation built on Jan. 29, 2023, 8:41 a.m.