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Touring Enterprises Cost of Capital Analysis by Ch M Imran is a document available to read on EtoBox.

Touring Enterprises is analyzing its cost of capital policy and whether it should include current liabilities in its calculation. Currently, it only considers long-term debt and equity in determining its weighted average cost of capital (WACC). Two alternatives are presented: maintaining the status quo, or including current liabilities at an assumed 6% cost. Calculating under the second alternative yields a slightly lower WACC, but current liabilities represent short-term financing and are part of working c

Author

Ch M Imran

Language

EN