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Burcolene (12/07, amended)

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

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August 7, 2018 at 8:07 pm #466669
fahad132
Participant
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part(a)
why using w.a.c.c to arrive at the valuation of company instead of ke=10.4%
please advise?
August 8, 2018 at 6:43 am #466760
John Moffat
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We discount the free cash flows at the WACC in order to arrive at the value of the business. (We discount the free cash flows to equity at the cost of equity to arrive at the value of the equity).
I explain this, with examples, in my free lectures.
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