The Weighted Average Cost of Capital (WACC) for Firm Valuation Calculations : A Reply

Llano-Ferro (2009) proposes a solution to avoid 'significant errors' when the Weighted Average Cost of Capital (WACC) obtained by the standard formula leads to significant errors in Net Present Value of the Firm calculations; particularly in those that apply to perpetual cash flow series. In this paper we show that there are not 'significant errors' but a wrong use of the formula and improper calculations of values

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Year of publication:	2012
Authors:	Velez-Pareja, Ignacio
Publisher:	[2012]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Kapitalkosten \| Cost of capital \| Unternehmensbewertung \| Firm valuation \| Cash Flow \| Cash flow

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Extent:	1 Online-Ressource (8 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Cuadernos Latinoamericanos de Administracion, Vol. VII, No. 12, pp. 31-35 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 2, 2009 erstellt
Other identifiers:	10.2139/ssrn.1428812 [DOI]
Classification:	G12 - Asset Pricing ; D61 - Allocative Efficiency; Cost-Benefit Analysis ; G31 - Capital Budgeting; Investment Policy ; H43 - Project Evaluation; Social Discount Rate
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013116958