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On the Weighted Average Cost of Capital: Reply

The Journal of Financial and Quantitative Analysis, 1975
The comment by Linke and Kim correctly observes that the assumption regarding the maintenance of constant proportional use of capital sources is not appropriate for our argument and should be deleted. As our analysis did not make use of this assumption, the two conclusions hold.1.
Raymond R. Reilly, William E. Wecker
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The Weighted-Average Cost of Capital

SSRN Electronic Journal, 2017
This note provides a conceptual introduction to the weighted-average cost of capital (WACC). It discusses and provides examples of calculating the WACC and its components. It is useful as a parallel reading for cases that require estimation of WACC or as background reading for a class discussion of WACC and its use as a hurdle rate.
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The Weighted Average Cost of Capital: A Caveat

The Engineering Economist, 1992
(1992). The Weighted Average Cost of Capital: A Caveat. The Engineering Economist: Vol. 37, No. 2, pp. 178-183.
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On the Weighted Average Cost of Capital with Personal Taxes

Accounting and Business Research, 1992
Abstract 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
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The weighted average cost of capital is not quite right

The Quarterly Review of Economics and Finance, 2009
Abstract 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 ...
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Understanding the Minefield of Weighted Average Cost of Capital

Business Valuation Review, 2005
In 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.
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Time lags and the weighted average cost of capital

Omega, 1975
Abstract 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.
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Managerial Decisions and the Weighted Average Cost of Capital

Journal of Finance Issues, 2008
This 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.
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Weighted Average vs. True Cost of Capital

Financial Management, 1973
D3/(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.
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More on the Weighted Average Cost of Capital: A Comment and Analysis

The Journal of Financial and Quantitative Analysis, 1974
The 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
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