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![]() | The contents of the Weighted cost of capital page were merged into Weighted average cost of capital. For the contribution history and old versions of the redirected page, please see its history; for the discussion at that location, see its talk page. |
![]() | The contents of the Marginal cost of capital schedule page were merged into Weighted average cost of capital on 10 November 2017. For the contribution history and old versions of the redirected page, please see its history; for the discussion at that location, see its talk page. |
what is the cost of capital in relation to property and what does property investors do with the cost of capital.and finally how do property owners calculate the cost of capital.
I think it's "weighted average cost of capital" that should be merged with cost of capital. - Jerryseinfeld 18:49, 21 Dec 2004 (UTC)
-- pgeoff 20:26, Dec 21, 2004 (UTC)
Hi. I was wondering if I could get some help on an economics question I have. Does anyone know the effects of Income Taxes on WACC? I greatly appreciate all your help.
Matt
Hello Matt, income taxes and WACC are a really difficult topic. You will find something in a book written by a colleague and myself: DCF, [1], chapter 3 or you look for some discussion papers ( [2], now published in The European Journal of Finance).
Andreas Loeffler.
Simple, WACC is simply the cost of new capital derived by averaging the weights of debt and equity in the capital structure. So then the impact of taxes is this. If a company pays a dividend that is after tax dollars and if they pay interest on a bond they expense the cost of the interested as part of doing business by expensing this reduces tax liability. From a tax perspective a capital structure of more bonds than stock would then be better.
Please correct the appearance in the page , something went wrong... -- YoavD 07:49, 21 January 2007 (UTC)
In regards to the symbols used on the formula: I have consistently seen (In Brealey and Myers textbook, as well as several other sources online) the following symbols used to denote the components of WACC: Cost of Debt: rD, Cost of Equity: rE, Market Value of Equity: E, Market Value of Debt: D, Total Firm Value (D+E): V
Are these the most common, global symbols used? I would like to change the formulas on the WACC page to reflect these if that is the case. Flammulated ( talk) 22:07, 15 February 2009 (UTC)Flammulated
This page deals with exactly the same subject as the page on the weighted cost of capital. 220.233.7.5 ( talk) 10:52, 23 May 2010 (UTC)
![]() | This article is rated C-class on Wikipedia's
content assessment scale. It is of interest to the following WikiProjects: | |||||||||||||||||||||||
|
![]() | The contents of the Weighted cost of capital page were merged into Weighted average cost of capital. For the contribution history and old versions of the redirected page, please see its history; for the discussion at that location, see its talk page. |
![]() | The contents of the Marginal cost of capital schedule page were merged into Weighted average cost of capital on 10 November 2017. For the contribution history and old versions of the redirected page, please see its history; for the discussion at that location, see its talk page. |
what is the cost of capital in relation to property and what does property investors do with the cost of capital.and finally how do property owners calculate the cost of capital.
I think it's "weighted average cost of capital" that should be merged with cost of capital. - Jerryseinfeld 18:49, 21 Dec 2004 (UTC)
-- pgeoff 20:26, Dec 21, 2004 (UTC)
Hi. I was wondering if I could get some help on an economics question I have. Does anyone know the effects of Income Taxes on WACC? I greatly appreciate all your help.
Matt
Hello Matt, income taxes and WACC are a really difficult topic. You will find something in a book written by a colleague and myself: DCF, [1], chapter 3 or you look for some discussion papers ( [2], now published in The European Journal of Finance).
Andreas Loeffler.
Simple, WACC is simply the cost of new capital derived by averaging the weights of debt and equity in the capital structure. So then the impact of taxes is this. If a company pays a dividend that is after tax dollars and if they pay interest on a bond they expense the cost of the interested as part of doing business by expensing this reduces tax liability. From a tax perspective a capital structure of more bonds than stock would then be better.
Please correct the appearance in the page , something went wrong... -- YoavD 07:49, 21 January 2007 (UTC)
In regards to the symbols used on the formula: I have consistently seen (In Brealey and Myers textbook, as well as several other sources online) the following symbols used to denote the components of WACC: Cost of Debt: rD, Cost of Equity: rE, Market Value of Equity: E, Market Value of Debt: D, Total Firm Value (D+E): V
Are these the most common, global symbols used? I would like to change the formulas on the WACC page to reflect these if that is the case. Flammulated ( talk) 22:07, 15 February 2009 (UTC)Flammulated
This page deals with exactly the same subject as the page on the weighted cost of capital. 220.233.7.5 ( talk) 10:52, 23 May 2010 (UTC)