WACC assumptions
What are the assumptions in WACC, if two analysts do the same DCF, how can they get two different values in WACC? I was asked in an interview
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Different ways of calculating cost of debt (ytm, coupon rates, etc.)
How the analysts assume the targeted capital structure when calculating wacc
Whether they incorporated a size or liquidity premium into capm
Didnt pull exact same comps
The most subjective part I would say is the Beta (which market comparable companies were used in the calculation)
Calculation of the cost of debt, the beta, as well as the risk-free rate and market premium
was this for an analyst position?
Could be that one of the two did not re-lever beta, also if the analysts had different comps for beta
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