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Using CFO Sheila Dowlings projected weighted-average-cost of capital (WACC) schedule, what discount rate would you choose?What flaws, if any, might be inherent in using the
Using CFO Sheila Dowlings projected weighted-average-cost of capital (WACC) schedule, what discount rate would you choose?What flaws, if any, might be inherent in using the WACC as the discount rate?
| Dbet/ | Debt/ | Asset | Equity | Cost of | Cost of | |
| Value | Equity | Beta | Beta | Equity | Debt | WACC |
| 0.0% | 0.0% | 1.18 | 1.18 | 9.67% | 7.75% | 9.67% |
| 5.0% | 5.3% | 1.18 | 1.22 | 9.86% | 7.75% | 9.60% |
| 10.0% | 11.1% | 1.18 | 1.26 | 10.07% | 7.75% | 9.53% |
| 15.0% | 17.6% | 1.18 | 1.31 | 10.30% | 7.75% | 9.45% |
| 20.0% | 25.0% | 1.18 | 1.36 | 10.56% | 7.75% | 9.38% |
| 25.0% | 33.3% | 1.18 | 1.42 | 10.86% | 7.75% | 9.31% |
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Distressed Debt Analysis Strategies For Speculative Investors
Authors: Stephen Moyer
1st Edition
1932159185, 978-1932159189
