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Will the deflated WACC please stand up? And the real WACC should sit down

In a world with taxes, there is a small discrepancy between the deflated WACC WACCDef and the real wacc. This is due to the (1-T) term that is in the standard expression for the WACC applied to the Free Cash Flow (FCF). We compare different approaches for valuing nominal and real cash flows with the...

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Publié dans:Cuadernos Latinoamericanos de Administración
Auteurs principaux: Joseph Tham, Ignacio Vélez-Pareja
Format: Artigo
Langue:Inglês
Publié: Universidad El Bosque 2011
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Accès en ligne:https://www.redalyc.org/articulo.oa?id=409634366002
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