Normalizing Earnings for a Troubled Firm

The user must define the following inputs:

- Current EBIT

- Current Interest Expense

- Current Capital Spending

- Current Depreciation & Amort'n

- Tax Rate on Income

- Current Revenues

- Current Non-cash Working Capital

- Chg. Working Capital

- Book Value of Debt

- Book Value of Equity

- Current riskfree (long term government bond) rate

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)