MARKET VALUE CALCULATION AND THE SOLUTION OF CIRCULARITY BETWEEN VALUE AND THE WEIGHTED AVERAGE COST OF CAPITAL WACC
Most finance textbooks present the Weighted Average Cost of Capital (WACC) calculation as: WACC = Kd×(1-T)×D% + Ke×E%, where Kd is the cost of debt before taxes, T is the tax rate, D% is the percentage of debt on total value, Ke is the cost of equity and E% is the percentage of equity on total value...
Saved in:
| Published in: | RAM. Revista de Administração Mackenzie |
|---|---|
| Main Authors: | , |
| Format: | Artigo |
| Language: | Inglês |
| Published: |
Universidade Presbiteriana Mackenzie
2009
|
| Subjects: | |
| Online Access: | https://www.redalyc.org/articulo.oa?id=195415661007 |
| Tags: |
No Tags, Be the first to tag this record!
|