Weighted average cost of capital (WACC) with risky debt: a simple exposition (I)
Debt is rarely risk-free. Yet, on grounds of simplicity, in most discussions on the weighted average cost of capital (WACC), we assume that the debt is risk-free. At the same time, in the calculation of the WACC, we may use a value for the cost of debt d that is higher than the riskfree rate rf. In...
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| Publicado no: | Cuadernos Latinoamericanos de Administración |
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| Autor principal: | |
| Formato: | Artigo |
| Idioma: | Inglês |
| Publicado em: |
Universidad El Bosque
2012
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| Assuntos: | |
| Acesso em linha: | https://www.redalyc.org/articulo.oa?id=409634369003 |
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