We outline the math and assumptions behind weighted average cost of capital (WACC) and adjusted present value (APV) calculations. We first derive a general formula for the discount rate of equity and beta of equity under minimal assumpti... WANG,K Loue - 《Engineering Economist》 被引量: 6...
What is the difference between financial planning and capital budgeting? Explain the difference between incremental and zero-based budgeting methods. Define the following term: Capital budgeting. In what sense is the WACC an average cost or a m...
Explain the interactions among market efficiency, capital budgeting, and the cost of capital. Explain measurement of cost of capital. Define and explain cost of preference capital. In what sense is the WACC an average cost or a marginal cost? Theoretically, how do you calculate or determine...
Explain the concept of cost of capital. Explain the interactions among market efficiency, capital budgeting, and the cost of capital. How do tax considerations affect the cost of debt and the cost of equity? Explain. In what sense is the WACC an average cost or a marginal cost...