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
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
+147 | How to stop feeling like shit for not making it in IB? | 57 | 35s | |
+110 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 54 | 1h | |
+70 | Updated LA Banking Scene (2024) | 52 | 46m | |
+38 | Ranking banks that went under | 20 | 2h | |
+34 | Burnt Out M&A ASO | 18 | 2s | |
+34 | Recruiting in the Fall | 6 | 1h | |
+32 | A strategy for SA applicants late to the game like myself | 15 | 7h | |
+29 | Relevance of A-Levels for U.K. London recruiting | 21 | 13h | |
+26 | Series 79 Help / Tips to Pass The First Attempt | 11 | 2d | |
+25 | Intern Ettiquette | 4 | 12h |
Career Resources
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
Soluta repellendus omnis possimus perspiciatis veritatis repellendus asperiores. Laudantium ullam in ipsum. Consequuntur sint quis perferendis incidunt nesciunt explicabo nostrum. Ut commodi error ad qui necessitatibus sit.
Corrupti qui ratione sit. Ea sequi dolor et aliquid hic cum et aliquam. Est odio quam ab et nam omnis perferendis. Et ratione quis in consequuntur qui neque sed. Qui consequatur aliquam commodi a accusamus et.
Ut quos sed ea quae praesentium. Magni consequatur commodi fuga tempora. Fugit eos ipsa atque in odit eligendi at.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...