It was generally accepted that the weighted average cost of capital (WACC) for a company reflected an appropriate hurdle rate (minimum return or benchmark) for that company's investments. But a WACC for Langtry Falls could not be calculated because the company did not have publicly traded stock, a critical source of one input to the calculation. However, the benchmark for publicly traded competing companies would be meaningful to Langtry-these companies were facing the same underlying risks and competing under the same economic conditions. An average of the industry WACCs would be a defensible and informative benchmark for Langtry.

【書誌情報】

ページ数：5ページ

サイズ：A4

商品番号：HBSP-UV7508

発行日：2018/7/25

登録日：2018/9/13