WACC and APV Revisited

11 Pages Posted: 28 Jul 1998  

Andreas Loeffler

Freie Universit├Ąt Berlin

Lutz Kruschwitz

Free University of Berlin (FUB) - Department of Business and Economics

Date Written: April 1998

Abstract

In this paper we carefully analyze the assumptions of the WACC and the APV approach. Especially, we show that under mild conditions both methods do not yield the same value of the firm.

JEL Classification: G32

Suggested Citation

Loeffler, Andreas and Kruschwitz, Lutz, WACC and APV Revisited (April 1998). Available at SSRN: https://ssrn.com/abstract=110868 or http://dx.doi.org/10.2139/ssrn.110868

Andreas Loeffler (Contact Author)

Freie Universit├Ąt Berlin ( email )

Boltzmannstr. 20
Berlin, 14195
Germany

HOME PAGE: http://www.andreasloeffler.de

Lutz Kruschwitz

Free University of Berlin (FUB) - Department of Business and Economics ( email )

Boltzmannstrasse 20
D-14195 Berlin, 14195
Germany
+49 30 838-54631 (Phone)
+49 30 838-54468 (Fax)

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