Is it possible to use a constant WACC in valuation
Is this possible to use a constant WACC in the valuation of a company along with a changing debt?
Expert
The WACC can only be constant theoretically; if a constant debt is expected. If the debt changes from one year to the subsequent, the WACC changes too. In turn to value companies wherein debt changes dramatically, the Adjusted Present Value (AVP) is easier and more intuitive.
This is possible to use a constant WACC that is the weighted average of the WACC of the different years while debt changes, but this is a number that does not contain anything to do with the WACC in an exact year.
Who proposed definition and development of low-discrepancy sequence theory or quasi random number theory?
Is there any consensus among the chief authors in finance concerning the market risk premium?
which type of tax, direct or indirect is applicable in underdeveloped countries? Why? Show your critical areas and weaknesses.
Explain exotic option’s value of option pricing method.
Capital formation: It is an increase in the stock of capital in particular period is termed as capital formation.
According to what I read inside a book, market efficiency hypothesis means that the expected average value of variations is zero in the shares price. Thus, the best estimate of the future price of a share is its price now, as this incorporates all the available inform
What is optimal capital structure?
XYZ Company is interested in purchasing a new corporate jet for $6 million. This will depreciate the jet completely in 5 years and then sell it for $5 million. The jet will utilize $60,000 in fuel annually, and its maintenance will be $40,000 yearly. The tax rate of X
What are the various types of Corporate Bonds?
Types of agency: Specific types of Agency include:A) Auctioneers: Are an agent of vendor until the fall of the hammer when they become an agent for the purchaser.B) Discover Q & A Leading Solution Library Avail More Than 1439507 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1930481 Asked 3,689 Active Tutors 1439507 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
18,76,764
1930481 Asked
3,689
Active Tutors
1439507
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!