Results 211 to 220 of about 15,166 (255)
Some of the next articles are maybe not open access.
On the Weighted Average Cost of Capital with Personal Taxes
Accounting and Business Research, 1992Abstract This paper considers the impact of personal taxation on the Miles and Ezzell (1980) result that the weighted average cost of capital is the appropriate rate for discounting after corporation tax cash flows in an MM (Modigliani and Miller, 1958, 1963) perfect capital market with corporation tax.
Colin D. B. Clubb, Paul Doran
openaire +1 more source
The weighted average cost of capital is not quite right
The Quarterly Review of Economics and Finance, 2009Abstract A firm's cost of capital used in discounted cash flow analysis is commonly calculated as a weighted average of the after tax costs of the firm's various sources of financing (equity, debt, preferred stock). Its use implies that for investment projects earning precisely the WACC the cash (in)flow is exactly sufficient to reward all the ...
openaire +1 more source
Understanding the Minefield of Weighted Average Cost of Capital
Business Valuation Review, 2005In a previous article, I explained how we can use an iterative approach to reach value estimates that give consistent values whether we use the equity approach or the invested-capital approach to firm valuation. In response to that article, Alix Mandron wrote that these methods do not work correctly. This article is in response to Mandron's criticisms.
openaire +1 more source
Time lags and the weighted average cost of capital
Omega, 1975Abstract This paper analyses the effect on the weighted average cost of capital of lags between the times of raising debt and equity finance. It shows the results of such lags when associated with differing levels of gearing and differing costs of debt and equity.
openaire +1 more source
Weighted Average vs. True Cost of Capital
Financial Management, 1973D3/(l+ke)3 + . . , (2) where I1, 12, 13, . . . are the expected interest payments to the creditors, D1, D2, D3, . . . are the expected dividend payments to the stockholders, ki is the cost of debt, ke is the cost of equity; B is the market value of debt, and S is the market value of equity.
openaire +1 more source
A Little More on the Weighted Average Cost of Capital
The Journal of Financial and Quantitative Analysis, 1975In a recent issue of this journal, Linke and Kim [1], hereafter denoted as L-K, have shown that for finite-time horizons in excess of one period and if, over the same period, the firm's ratio of debt to equity is held constant, the firm's overall required rate of return could be expressed as a weighted average cost of capital.
openaire +1 more source
More on the Weighted Average Cost of Capital: A Comment and Analysis
The Journal of Financial and Quantitative Analysis, 1974The mathematical difficulties encountered when attempting to express the internal rate of return (IRR) of a combination of two or more investments as a weighted algebraic sum of the individual investments' IRRs has been recognized in the financial literature for some time.
Charles M. Linke, Moon K. Kim
openaire +1 more source
Financial Management, 1977
Assuming that the firm has an optimal debt/equity ratio, most textbooks recommend using the weighted average cost of capital as a cutoff rate for investment decision-making. Arditti [1] demonstrates that the components of the weighted after-tax cost of capital, as recommended by most textbooks, have been incorrectly specified.
Fred D. Arditti, Haim Levy
openaire +1 more source
Assuming that the firm has an optimal debt/equity ratio, most textbooks recommend using the weighted average cost of capital as a cutoff rate for investment decision-making. Arditti [1] demonstrates that the components of the weighted after-tax cost of capital, as recommended by most textbooks, have been incorrectly specified.
Fred D. Arditti, Haim Levy
openaire +1 more source
Managerial Decisions and the Weighted Average Cost of Capital
Journal of Finance Issues, 2008This paper explores the relationship between the weighted average cost of capital (WACC) of a company and its marginal cost of capital. We adopt the classic economic theory of production to shed light into the conditions upon which WACC can be safely treated as the marginal cost of a company.
openaire +1 more source
“The weighted average cost of capital is not quite right”: A rejoinder
The Quarterly Review of Economics and Finance, 2009Abstract Richard Miller's reply (2008) to my comment (2008) on his claim (2007) that the standard WACC formula fails to correctly remunerate shareholders and bondholders raises crucial questions on the nature of the project's debt that he considers in his calculations.
openaire +1 more source