To: Author
Article Fingerprint
ReserarchID
X09Z0
The paper compares classic WACC valuation method with equity cash flow and capital cash flow methods. As WACC method always use market values of debt and equity to determine weights, the method can give erroneous results whenever there are mismatches in the market valuation of debt. The tax-shield benefits are related to the actual interest amount that is based on the book value and therefore, the WACC computation method need to account tax shield benefits using book values. The paper used an example to compare valuation of a project using various valuation methods and found that the net present value obtained using modified version of the WACC, that used book value of debt to account tax shield, was comparable to other methods.
Prof. S. K. Mitra. 1969. \u201cRevisiting WACC\u201d. Global Journal of Management and Business Research - A: Administration & Management GJMBR-A Volume 11 (GJMBR Volume 11 Issue A11): .
Crossref Journal DOI 10.17406/GJMBR
Print ISSN 0975-5853
e-ISSN 2249-4588
Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.
Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.
Total Score: 101
Country: India
Subject: Global Journal of Management and Business Research - A: Administration & Management
Authors: Prof. S. K. Mitra (PhD/Dr. count: 0)
View Count (all-time): 120
Total Views (Real + Logic): 21027
Total Downloads (simulated): 10647
Publish Date: 1969 12, Wed
Monthly Totals (Real + Logic):
This paper attempted to assess the attitudes of students in
Advances in technology have created the potential for a new
Inclusion has become a priority on the global educational agenda,
The paper compares classic WACC valuation method with equity cash flow and capital cash flow methods. As WACC method always use market values of debt and equity to determine weights, the method can give erroneous results whenever there are mismatches in the market valuation of debt. The tax-shield benefits are related to the actual interest amount that is based on the book value and therefore, the WACC computation method need to account tax shield benefits using book values. The paper used an example to compare valuation of a project using various valuation methods and found that the net present value obtained using modified version of the WACC, that used book value of debt to account tax shield, was comparable to other methods.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.