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  2. Weighted average cost of capital - Wikipedia

    en.wikipedia.org/wiki/Weighted_average_cost_of...

    Weighted average cost of capital equation: WACC= (W d)[(K d)(1-t)]+ (W pf)(K pf)+ (W ce)(K ce) Cost of new equity should be the adjusted cost for any underwriting fees termed flotation costs (F): K e = D 1 /P 0 (1-F) + g; where F = flotation costs, D 1 is dividends, P 0 is price of the stock, and g is the growth rate. There are 3 ways of ...

  3. Average cost method - Wikipedia

    en.wikipedia.org/wiki/Average_cost_method

    The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale. This gives a weighted-average unit cost that is applied to the units in the ending inventory. There are two commonly used average cost methods: Simple weighted-average cost method and perpetual weighted-average cost method. [2]

  4. Cost of capital - Wikipedia

    en.wikipedia.org/wiki/Cost_of_capital

    To calculate the firm's weighted cost of capital, we must first calculate the costs of the individual financing sources: Cost of Debt, Cost of Preference Capital, and Cost of Equity Cap. Calculation of WACC is an iterative procedure which requires estimation of the fair market value of equity capital [citation needed] if the company is not listed.

  5. Economic value added - Wikipedia

    en.wikipedia.org/wiki/Economic_Value_Added

    c = cost of capital, or the weighted average cost of capital (WACC). NOPAT is profits derived from a company's operations after cash taxes but before financing costs and non-cash bookkeeping entries. It is the total pool of profits available to provide a cash return to those who provide capital to the firm.

  6. Valuation using discounted cash flows - Wikipedia

    en.wikipedia.org/wiki/Valuation_using_discounted...

    WACC is the weighted average cost of capital, combining the cost of equity and the after-tax cost of debt; t is the time period; n is the number of time periods to "maturity" or exit; g is the sustainable growth rate at that point

  7. List of price index formulas - Wikipedia

    en.wikipedia.org/wiki/List_of_price_index_formulas

    The Marshall-Edgeworth index, credited to Marshall (1887) and Edgeworth (1925), [11] is a weighted relative of current period to base period sets of prices. This index uses the arithmetic average of the current and based period quantities for weighting. It is considered a pseudo-superlative formula and is symmetric. [12]

  8. Cost of equity - Wikipedia

    en.wikipedia.org/wiki/Cost_of_equity

    Such costs are separated into a firm's cost of debt and cost of equity and attributed to these two kinds of capital sources. A firm's overall cost of capital, which consists of the two types of capital costs, is then determined as the weighted average cost of capital. Knowing a firm's cost of capital is needed in order to make better decisions.

  9. Weighted average return on assets - Wikipedia

    en.wikipedia.org/wiki/Weighted_average_return_on...

    The weighted average return on assets, or WARA, is the collective rates of return on the various types of tangible and intangible assets of a company.. The presumption of a WARA is that each class of a company's asset base (such as manufacturing equipment, contracts, software, brand names, etc.) carries its own rate of return, each unique to the asset's underlying operational risk as well as ...