Results 241 to 250 of about 166,398,837 (282)

A Little More on the Weighted Average Cost of Capital

The Journal of Financial and Quantitative Analysis, 1975
In 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.
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The Weighted Average Cost of Capital as a Cutoff Rate: A Critical Analysis of the Classical Textbook Weighted Average

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
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Weighted Average Cost of Capital - Factoring in Changing Leverage

SSRN Electronic Journal, 2008
Where the project is financed by debt and equity and the internal rate of return of the project is computed for a period extending beyond the amortization period of the debt, accepting the project based on the conventional method of computing the WACC using first year weights, is incorrect. Besides the fact that such a computation pre-supposes default,
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“The weighted average cost of capital is not quite right”: A rejoinder

The Quarterly Review of Economics and Finance, 2009
Abstract 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.
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Comment on “The weighted average cost of capital is not quite right”

The Quarterly Review of Economics and Finance, 2009
Abstract One of the most important equations in modern finance theory and practise is the WACC textbook formula accounting for the capital structure and resulting tax consequences on valuing a stream of cash flows. In the article “The weighted average cost of capital is not quite right” published in this paper by Richard A. Miller in February 2009,
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“The weighted average cost of capital is not quite right”: A comment

The Quarterly Review of Economics and Finance, 2009
Abstract In this journal, Miller [Miller, R. A. (2009). The weighted average cost of capital is not quite right. The Quarterly Review of Economics and Finance , 49 , 128–138] argues that the standard WACC formula fails to correctly remunerate shareholders and bondholders. This is proved by considering a project yielding a zero net present value. In
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The Weighted Average Cost of Capital and Shareholder Wealth Maximization

The Journal of Financial and Quantitative Analysis, 1977
A set of theorems was derived based on the following set of axioms: (1) financial management seeks to maximize the wealth of existing shareholders; (2) all projects being considered at period 0 are of one period duration and possess the attribute that their adoption or rejection by the firm will not affect the business risk of the firm's asset ...
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Market Value Calculation and the Solution of Circularity Between Value and the Weighted Average Cost of Capital WACC (A Note on the Weighted Average Cost of Capital WACC)

2001
La versión española de este artículo se puede encontrar en <a href='http://ssrn.com/abstract=279460'>http://ssrn.com/abstract=279460</a> Most finance textbooks (See Benninga and Sarig, 1997, Brealey, Myers and Marcus, 1996, Copeland, Koller and Murrin, 1994, Damodaran, 1996, Gallagher and Andrew, 2000, Van Horne, 1998, Weston and ...
Ignacio Velez-Pareja, Joseph Tham
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Implications of the method of capital cost payment on the weighted average cost of capital.

Health services research, 1986
The author develops a theoretical and mathematical model, based on published financial management literature, to describe the cost of capital structure for health care delivery entities. This model is then used to generate the implications of changing the capital cost reimbursement mechanism from a cost basis to a prospective basis.
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Weighted Average Cost of Capital

2015
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