article thumbnail

The School Bell Rings: Time for Class!

Musings on Markets

The six classes that I prepped for in those two years ranged from banking to investments to corporate finance, and while I have never worked harder, much of what I teach today came out of those classes. In 1984, I moved on to the University of California at Berkeley, as a visiting lecturer, teaching anything that needed to be taught.

article thumbnail

Boards’ Dilemma: The Compounding Problem Hidden in Share Buyback Execution Products

Reynolds Holding

As a capital allocation decision, share buybacks intersect all three of the main corporate finance activities of investing, financing, and dividends [1]. William Thorndike’s book “The Outsiders” highlights how some of the greatest shareholder value creating CEOs are capital allocators.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Everything about Share Buybacks

Andrew Stolz

When I started in finance, buybacks were almost unheard of; now, companies prefer to distribute cash through buybacks. companies have distributed more money through buybacks than through dividends. This usually happens when a company is making a deliberate and significant change to its capital structure.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

Determining a company’s “Cost of Capital” is vital in corporate finance and valuation, and the Weighted Average Cost of Capital (WACC) provides a specific way of doing so. These costs are then combined into a “weighted average” which represents the overall cost of financing a business.

article thumbnail

What is Weighted Average Cost of Capital (WACC)?

Andrew Stolz

What Impacts the Weighted Average Cost of Capital? The optimal capital structure of a company is the proportion of debt and equity financing that maximizes the company’s value while minimizing the cost of capital (WACC). The lower the cost of capital, the higher the present value of future cash flows.