Which Of The Following Is True Of The Change In The Weighted Average Cost Of Capital Of A Firm?

journal article

Weighted Average vs. True Cost of Capital

Fiscal Management

Published By: Wiley

Financial Management

https://doi.org/ten.2307/3664988

https://www. jstor .org/stable/3664988

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Abstract

This article demonstrates a bias in the weighted boilerplate calculation of cost of uppercase, and a method for calculating the "true" price for the familiar abiding dividend growth model is developed.

Journal Information

Financial Management (FM) serves the profession past publishing significant new scholarly research in finance that is of the highest quality. The principal criteria for publishability are originality, rigor, timeliness, practical relevance and clarity. FM enjoys a wide circulation among academics and practitioners, and as such, links those generating new noesis with those responsible for employing that knowledge in the creation of value. FM offers a unique balance of rigor and originality of inquiry with practical relevance.

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