Business, Management and Accounting
4 years ago

Avoid costly errors in firm valuation with new solution for WACC calculations.

1 view
RePEc: Research Papers in Economics
The Weighted Average Cost of Capital (WACC) for firm valuation calculations: A reply
Ignacio Vélez–Pareja

Paper Summary

The article addresses errors in firm valuation caused by incorrect use of the Weighted Average Cost of Capital formula. The researchers show that the errors are not due to flaws in the formula itself, but rather from mistakes in how it is applied and values are calculated.

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