Module VI· Circular References & IterationAdvanced
Question
How do you structure multiple circulars such as interest, tax shield, and DCF WACC?
Answer
Separate circulars into controlled modules with switches and checks. Avoid chaining unnecessary loops. Interest circulars belong in the debt schedule; tax shield circulars in tax / debt blocks; WACC circulars in valuation should often be solved with fixed target capital structure instead. Label each circular and provide non-circular fallback logic for audit.