Results 161 to 170 of about 5,105 (214)
Journal of Finance Issues, 2008 The Weighted Average Cost of Capital (WACC) has become a standard term and toot in finance. Given its broad acceptance and use, individuals are tempted to apply the WACC method without critically considering its theoretical foundation. Specifically, this study explains two common misunderstandings about the WACC method found in industry, literature and
Dean Johnson, Howard Qi
openaire +2 more sources
Applicability of the Classic WACC Concept in Practice
Latin American Business Review, 2008 ABSTRACT A large percentage of companies use the discounted cash flow (DCF) approach as the primary technique for investment/project evaluation and the capital budgeting process. This approach requires forecasting the detailed cash flow of the project under evaluation and then discounting the resulting cash flow to the present value (Net Present Value ...
Mian M.A., Vélez-Pareja I.
openaire +3 more sources
Some of the next articles are maybe not open access.
Related searches:
Related searches:
Journal of Business Valuation and Economic Loss Analysis, 2008
Miller and Modigliani's seminal papers (1958, 1963) gave rise to two alternative methodologies for project and firm valuations: the Weighted Average Cost of Capital (WACC) and Adjusted Present Value (APV). As is often the case of many larger firms in industrialized economies, whenever a target debt ratio is set up for the long term, WACC might be a ...
exaly +2 more sources
Miller and Modigliani's seminal papers (1958, 1963) gave rise to two alternative methodologies for project and firm valuations: the Weighted Average Cost of Capital (WACC) and Adjusted Present Value (APV). As is often the case of many larger firms in industrialized economies, whenever a target debt ratio is set up for the long term, WACC might be a ...
exaly +2 more sources
Optimal WACC in tariff regulation under uncertainty [PDF]
Journal of Regulatory Economics, 2022 In the regulation of network tariffs, the compensation for the opportunity costs of capital through the Weighted Average Costs of Capital (WACC) plays a crucial role.
Ward Romeijnders +2 more
exaly +2 more sources
Using the WACC to Value Real Options
Financial Analysts Journal, 2004 We present a real option valuation using the weighted average cost of capital (WACC). This is an alternative to risk-neutral real option valuation. Using the WACC involves a marginal increase in mathematical complexity, but it is easy to implement in a ...
Tom Arnold, Timothy Falcon Crack
exaly +3 more sources
SSRN Electronic Journal, 1998
In this paper we carefully analyze the assumptions of the WACC and the APV approach. Especially, we show that under mild conditions both methods do not yield the same value of the firm.
Andreas Löffler, Lutz Kruschwitz
openaire +1 more source
In this paper we carefully analyze the assumptions of the WACC and the APV approach. Especially, we show that under mild conditions both methods do not yield the same value of the firm.
Andreas Löffler, Lutz Kruschwitz
openaire +1 more source
Business Valuation Review, 2005
This article clarifies some of the issues raised by the author in an earlier article. It is also a reply to criticisms advanced by J. Morris. Regarding the controversy of book versus market-value weights, it is shown that, aside from not being grounded in proper theory, market-value weights computed through iterations are not even needed: in simple ...
openaire +1 more source
This article clarifies some of the issues raised by the author in an earlier article. It is also a reply to criticisms advanced by J. Morris. Regarding the controversy of book versus market-value weights, it is shown that, aside from not being grounded in proper theory, market-value weights computed through iterations are not even needed: in simple ...
openaire +1 more source
2018
The WACC (weighted average cost of capital) and the hurdle rate determine key input parameters for investment decisions in energy companies. The WACC is necessary to calculate the required key financial KPIs—NPV , DPI and DPP—while the hurdle rate sets the minimum return requirement a project needs to achieve in order to reach approval and to ...
Martin Schwarzbichler +2 more
openaire +1 more source
The WACC (weighted average cost of capital) and the hurdle rate determine key input parameters for investment decisions in energy companies. The WACC is necessary to calculate the required key financial KPIs—NPV , DPI and DPP—while the hurdle rate sets the minimum return requirement a project needs to achieve in order to reach approval and to ...
Martin Schwarzbichler +2 more
openaire +1 more source
Will the Deflated WACC Please Stand Up? And the Real WACC Should Sit Down
SSRN Electronic Journal, 2010In a world with taxes, there is a small discrepancy between the deflated WACC WACCDef and the real wacc. This is due to the (1-T) term that is in the standard expression for the WACC applied to the Free Cash Flow (FCF). We compare different approaches for valuing nominal and real cash flows with the 1) nominal Weighted Average Cost of Capital, WACC, 2)
Joseph Tham, Ignacio Velez-Pareja
openaire +1 more source
Growth Expectations out of WACC
SSRN Electronic Journal, 2020We reconcile the empirically flat relation between historical betas and stock returns (flat security market line) with the common usage of the CAPM based on historical betas in valuation. Analysts bias cash flow growth expectations upwards for high-beta firms, so that the value-reducing effect of higher historical systematic risk cancels out and buy ...
Petri Jylha, Michael Ungeheuer
openaire +1 more source