MBA Finance Tutorials
MBA Finance Tutorials
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  • Просмотров 7 634
Deriving the Weighted Average Cost of Capital (WACC)
Many people tend to memorize the equation for Weighted Average Cost of Capital, or WACC, without understanding where it comes from. This robs the user of a true understanding of what's going on.
Here we start from the basics and derive WACC from the basics.
Просмотров: 565

Видео

Fisher's theory of optimal intertemporal choice and resource allocationFisher's theory of optimal intertemporal choice and resource allocation
Fisher's theory of optimal intertemporal choice and resource allocation
Просмотров 7 тыс.7 лет назад
An introductory question on the optimal investment amount given two time periods, an initial amount of money, an investment opportunity curve, and a fixed return in the capital market.

Комментарии

  • @jokkon13
    @jokkon13 8 месяцев назад

    Great teacher - great video. I learned something new today. Thank you.

  • @U2BEE
    @U2BEE Год назад

    Very good video to understand Fisher Sepreation Theorem!

  • @pedrohenriqueoliveirasanto2962
    @pedrohenriqueoliveirasanto2962 2 года назад

    Great video!

  • @entrepreneurnit5989
    @entrepreneurnit5989 2 года назад

    Well explained!

  • @mardiniwilldern
    @mardiniwilldern 3 года назад

    Thank you very much for the clear explanation.

  • @bisoothapa547
    @bisoothapa547 3 года назад

    Upload video every day I will become your student

  • @wilhelmreichert7107
    @wilhelmreichert7107 3 года назад

    This is perfect, thank you very much!

  • @Jeffkingson
    @Jeffkingson 3 года назад

    I just don't get why rts=rd on 9:07. Thanks for breaking down this formula!

    • @mbafinancetutorials4116
      @mbafinancetutorials4116 3 года назад

      Think about what an interest tax shield is. The tax shield in each period is equal to the interest rate * debt load * tax rate. So what's the "risk" inherent in this? Since this quantity is tied to the debt load, it's the risk of the debt, or rd. So therefore rts = rd.

  • @adrienl.6581
    @adrienl.6581 4 года назад

    Thank you very much.

  • @DougQuixote
    @DougQuixote 5 лет назад

    I have looked for SO LONG as to why the productivity line would be curved, this is fantastic!

    • @2001nsharma
      @2001nsharma Год назад

      Glad to help! All these years later 😁

  • @DanPolglase
    @DanPolglase 5 лет назад

    d) if you invest 1M and get 3M returned, isnt that a 300% return?

    • @mbafinancetutorials4116
      @mbafinancetutorials4116 5 лет назад

      Average rate of return deals with net returns, not gross. See here for more info: www.investopedia.com/articles/basics/10/guide-to-calculating-roi.asp If you invest 1M to make 1M, your ROI is 0%. It wouldn't make sense to say the return is 100% right?

  • @陈圣苑
    @陈圣苑 5 лет назад

    Hello Dear Tutorial This is the most useful educational video I watched. Thank you for your dedication to this video.