Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Is it possible to use a constant WACC in the valuation of a company with a changing debt?
Theoretically, the WACC can only be constant if a constant debt is expected. If the debt changes from one year to the next, the WACC changes as well. In order to value companies in which debt changes dramatically, the APV (Adjusted Present Value) is simpler and more intuitive. It is possible to use a constant WACC (the weighted average of the WACC of the dissimilar years) when debt changes, but it is a number that does not have anything to do with the WACC in a certain year.
1024x768 Normal 0 false false false EN-IN X-NONE X-NONE
Working capital cycle (operating/trading/cash cycle) It is the time between paying for goods supplied and final receipt of cash from their sale. It is desirable to keep cycle a
CONCEPTS OF WORKING CAPITAL There are two concepts of Working Capital - Net working capital and Gross Working capital. 1. Gross Working Capital Gross Working capital re
What is the correlation between the efficient portfolio and the risk-free asset? Possible answers are +1, -1, 0, or cannot be calculated.
Explain Exchange Rate Risk Exchange-rate risk denotes to the risk the swap bank faces from fluctuating exchange rates throughout the time it takes the bank to lay off a swap it
Identify and explain the key stages in the capital investment decision-making process and the role of investment appraisal in this process.
Q. What is Accumulated Depreciation? Accumulated Depreciation - Total DEPRECIATION pertaining to an ASSET or group of assetsfrom the time the assets were placed in services unt
No External Financing for New Proposals: If a firm have sufficient retained earnings with it as required by the new proposal, then the firm may not raise any external finance. In
Q. Is Conservatism an investment strategy? Conservatism - An investment strategy aimed at long-term capital appreciation with low risk; moderate; cautious; opposite of aggressi
Problem There are two investment plans in the market whose details are given below based on which you need to decide which investment plan you need to select. Propose which inv
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd