In a perfect world, the company would accept all the positive NPV projects that come its way but in reality, we have things called constraints . For example, you might have a limited budget, and your manager says "look you can't go beyond…
As we discussed in the last article, the dividend discount model could be used to come up with a valuation for a firm based on the number of dividends that we expect that the firm is going to issue over time. So we can value the firm by taking their…
So previously we talked about the dividend discount model and that was how we would value the firm as a stream of dividends into the future and we would take the present value and discount those dividends to the present. Then there was the total pa…
We're going to talk about what the weighted average cost of capital is and how you would go about calculating it and then we'll walk through an example. When we think about WACC this weighted average cost of capital really what we've got…
