Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/66773 
Year of Publication: 
2012
Citation: 
[Journal:] e-Finanse: Financial Internet Quarterly [ISSN:] 1734-039X [Volume:] 8 [Issue:] 2 [Publisher:] University of Information Technology and Management [Place:] Rzeszów [Year:] 2012 [Pages:] 34-43
Publisher: 
University of Information Technology and Management, Rzeszów
Abstract: 
The aim of the article is to present the method of establishing equity shares in weight average cost of capital (WACC), in which the value of loan capital results from the fixed assumptions accepted in the financial plan (for example a schedule of loan repayment) and own equity is evaluated by means of a discount method. The described method causes that, regardless of whether cash flows are calculated as FCFF or FCFE, the result of the company valuation will be identical.
Subjects: 
weight average cost of capital
discount rate
free cash flow
company valuation
assessment of investment profitability
JEL: 
G31
G32
G39
Document Type: 
Article

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