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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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Modeling Managers as EPS Maximizers

Reynolds Holding

To see this distinction, consider the choice of capital structure: whether to use equity financing or a combination of equity and debt. The determining factor will be the capitalization rate of the firm’s assets: the discount rate on the firm’s cash flows minus the cash-flow growth rate. REFERENCES Almeida, H. Graham, J.,

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Pleading Bad Faith Against Special Committee Members: A New Trend?

Cooley M&A

by its controlling stockholder, Kien Huat in 2019. In May 2019, the controlling stockholder engaged Union Gaming to evaluate future revenue prospects for an Orange County facility. In February 2019, Empire engaged Moelis to advise on capital structure issues and long-term debt. Background. Sales Process.

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Does “Wedge” Size in Dual-Class Firms Matter?

Reynolds Holding

While this capital structure has historically been permitted in the United States, institutional investors and index providers have recently expressed strong opposition to it. But opponents argue that the combination of weak ownership incentives and entrenchment results in agency problems.

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Do Hostile Restructurings Mean a New Identity for the “Official Committee” in Bankruptcies?

Reynolds Holding

18] Certain features of modern-day distressed capital structures exacerbate this problem. 471 (2019). [24] 17] To the extent that their objectives differ – which is common, since unsecured creditors can be anyone from bondholders to unionized employees to tort victims – these differences are hard to reconcile. 1333 (2021). [23]

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How to Get a BSPCE Valuation for Your Startup’s Employee Share Plan

Equidam

Beneficiaries of BSPCEs are typically employees and executive managers of the company (and since 2019, also employees of its subsidiaries), as well as certain board members – essentially the people actively involved in building the company.