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Review the concept of WACC

Andrew Stolz

This is a Valuation Master Class student essay by Teeradon Piyakiattisuk from March 19, 2019. Weight average cost of capital (WACC) is a calculation of a firm’s cost of capital which includes all sources of capital such as common stocks, preferred stocks, and bonds. Lower WACC can increase the present value of a firm.

Beta 52
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Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Brian DeChesare

Plot Out the Possible Scenarios – And estimate the market value of each Debt tranche and the company’s Equity in the most likely outcomes Create Your Trade – The simplest approach is to long one part of the capital structure and short another, but you could also long or short just one component and use options or CDS to hedge the risk.

Equity 103
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Credit Hedge Funds: Full Guide to the Industry, Strategies, Recruiting, and Careers

Brian DeChesare

This article from Barclays has some useful graphs, and the one with returns from 2000 – 2019 and 2010 – 2019 sums up the advantages of credit funds quite well: In short, the average credit hedge fund outperformed the average fund in the other categories on a risk-adjusted basis but still trailed benchmarks like the high-yield index.

Equity 52
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Appraiser Newsroom - Untitled Article

Appraiser Newsroom

He is member of the Beta Gamma Sigma Honor Society, Financial Executives International, and the National Association of Corporate Directors (NACD). Dr. Everett also has an M&A Advisory and business valuation practice. Joseph Thompson | ASA, CFA | Principal | Griffing Group Joseph W.