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The Weighted Average Cost of Capital (WACC) for firm valuation calculations: A reply

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Author Info
Ignacio Velez-Pareja ()

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Abstract

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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Publisher Info
Paper provided by UNIVERSIDAD TECNOLÓGICA DE BOLÍVAR in its series Documentos de Trabajo with number 005690.

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Length: 8
Date of creation: 05 Jul 2009
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Handle: RePEc:col:000162:005690

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This page was last updated on 2009-12-15.

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