Formulas Involved in WACC Calculations

Which discount rate should a company use to evaluate its projects or to value its assets in general? This note is intended to clarify the different assumptions and formulas used to calculate the WACC that students may encounter in different textbooks and articles.
Collection: IESE (España)
Ref: FN-604-E
Format: PDF
Number of pages: 3
Publication Date: Apr 25, 2013
Language: English

Description

Which discount rate should a company use to evaluate its projects or to value its assets in general? This note is intended to clarify the different assumptions and formulas used to calculate the WACC that students may encounter in different textbooks and articles.
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Learning Objective

To help students calculate the WACC formula in text books or articles.

Formulas Involved in WACC Calculations

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"Formulas Involved in WACC Calculations"