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Q: Why use market value for calculating WACC?
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What does wacc measure?

WACC is a component used in finance to measure the company's cost of capital, usually as a discounting factor and the companies use debt or equity for financing.


How do I find out my car's market value?

A great place to find your vehicle's market value would be Kelley Blue Book. Even dealerships use this tool in determining market value of trade in vehicles, so it is a great tool for you to use.


Does state farm insurance use the trade in value or the retail value of a car to determine the value of a car if totaled?

They use a market value guide.


When calculating risk analysis you use both Value Rating Factors and Likelihood categories The table that covers the sum of your value rating is?

Table 3-13


What are the effects of a corporate tax on the Weighted Average Cost of Capital of a business?

Only when interest paid on debt is allowed to be tax deductible that a corporate tax will help pull the WACC down. This is because we used an after-tax rate for cost of debt in calculating WACC. And by using the after-tax rate we are assumming that the government allows companies to use interest paid on debt reduce their income tax obligations, hence creating a tax-shield benefit for adding debt. From Peerawich


Which depreciation method does not use residual value in calculating the first years depreciation expense?

Declining-Balance


When calculating risk analysis you use both value rating factors and likelihood categoies the table the covers te sum of your value rating is?

Table 3-13


How business use value chains and SWOT analysis to identify electronic commerce opportunities?

Businesses use value chains and SWOT analysis to identify electronic commerce opportunities by constantly verifying that the values they are calculating are correct.


What is use to determine the value of one currency against another?

The currency market.


How much is 3 grams of 10 kt gold worth?

Please see the related links for calculating gold prices, that are very simple to use. The first is a precious metal calculator that will compute live market value for gold and other precious metals. The second is a scrap gold calculator that provides a live market value and a breakdown in percentages of what you are likely to receive at pawn shops, mail in gold sites, ebay and other venues.


When calculating risk analysis you use both the value rating factors and the likelihood categories The table for law enforcement effectiveness is?

Table 4-17


How do you solve this finance problem on WACC?

To calculate the Weighted Average Cost of Capital (WACC), you need to determine the weight of each source of capital (equity and debt) in the company's capital structure. Multiply the weight of equity by the cost of equity, and multiply the weight of debt by the cost of debt (adjusted for taxes). Add these results to get the WACC. The formula for WACC is: WACC = (E/V) * Re + (D/V) * Rd * (1 - Tax Rate), where E is equity, V is the total value of the company, Re is the cost of equity, D is debt, Rd is the cost of debt, and Tax Rate is the corporate tax rate.