Valutico

FEBRUARY 27, 2024

Weighted Average Cost of Capital (WACC): WACC is the average rate of return a company is expected to provide to all its investors, including equity and debt holders. It is calculated by weighting the cost of equity and cost of debt based on their proportions in the capital structure.

Discounted Cash Flow 52

Discounted Cash Flow Risk Premium Risk-free Rate Weighted Average Cost of Capital 52

Reynolds Holding

APRIL 17, 2022

Managers who anticipate these agency problems won’t invest in a moonshot even if they believe it has a positive net present value. Investors are willing to finance an innovation project when early results from the project – revenue trends, user growth, clinical trial data – reliably indicate future profits.

Technology 111

Technology Net Present Value Finance Equity 111

Reynolds Holding

APRIL 25, 2023

In business schools, managers are taught to maximize the net present value (NPV) of future cash flows. We propose a theory of corporate finance based on the idea that firm managers maximize EPS: the difference between net operating profits and interest expense divided by total shares outstanding.

Net Present Value 59

Net Present Value Corporate Finance Finance Equity 59

Class VI Partner

JULY 28, 2021

Common Equity Common Equity (sometimes also referred to as Common Stock) reflects the value of a company’s assets minus its liabilities minus any Preferred Equity that would have preference over the Common Equity. It is typically the highest risk/highest potential return portion of a company’s capital structure.

Book Value 52

Book Value Equity Enterprise Value Fair Market Value 52