The definition of a datum is a fact used to make a conclusion or a point of reference in geography or geology. An example of a datum is a new scientific discovery used to reach a conclusion about the common cold.
How do you estimate minimum cash balance for the company? 2 ways I heard about are: 1) keep it equal to cash balance on B/S and 2) based on Net Working Capital. Is any of those methods preferred? Is there any other school of calculation that? And, if NWC method, then what exactly do you include in calculation (like include or excl.
Unless you work in an odd ball group, most of the time a minimum cash balance is needed for ABL collateral commitments for the company in question's revolving credit facility. Getting this number should be same procedure as getting the cost debt for you WACC from DCM.