Abstract
This paper is a critical review on "The Weighted Average Cost of Capital (WACC) for Firm Valuation Calculations" by Fernando Llano-Ferro was published in International Research Journal of Finance and Economics, Issue 26 (2009). In this study, he explained the important of WACC in the field of finance, and gave an alternative approach to calculate WACC while identifying some errors in traditional approach. This paper presents some backdrops of his study and pinpoints some weak assumptions in his new formula of WACC. This paper also gives an alternative approach to calculate WACC for firm valuation.
| Original language | English |
|---|---|
| Pages (from-to) | 7-9 |
| Number of pages | 3 |
| Journal | International Research Journal of Finance and Economics |
| Volume | 45 |
| Publication status | Published - 1 Sept 2010 |
| Externally published | Yes |