The WACC is just the rate at which the Free Cash Flows must be discounted to obtain the same result as in the valuation using Equity Cash Flows discounted at the required return to equity (Ke).The WACC is neither a cost nor a required return: it is a weighted average of a cost and a required...

We use discounted cash flow analysis to measure a country's fiscal capacity. Crucially, the discount rate applied to projected cash flows includes a GDP risk premium. We apply our valuation method to the CBO's projections for the U.S. federal government's deficit between 2022 and 2051 and debt...

We estimate the collective return to all investors in ventures in our sample over their life cycle. The net present value per dollar invested in the first round of funding (NPV) is significantly positive on average but comes down after 1999. The structural break follows the passage of the...

This research aims to test and analyze information from the cash flow statement on the share return. The cash flow intended is from operating, financing, and investing activities. Meanwhile, the shares utilized belong to the infrastructure, utility, and telecommunication companies listed on the...