part(a)
why using w.a.c.c to arrive at the valuation of company instead of ke=10.4%
please advise?
Ask the Tutor ACCA AFM
Burcolene (12/07, amended)
7y ago#1We 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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