Valuation Methodology: Comparison of the Weighted-Average Cost of Capital and Equity-Residual Approaches Harvard Case Solution & Analysis

This technical note compares the two treatments duty use discounted cash flow evaluation of investment projects or companies. The note shows that the average cost of capital approach (WACC) and Equity Residual Approach (ER) give equivalent results, if appropriate assumptions are used. Common characteristics are illustrated by concrete examples, including spreadsheets LOTUS. "Hide
by Robert S. Harris 10 pages. Publication Date: August 26, 1992. Prod. #: UV2312-PDF-ENG

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