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Mashcka [7]
3 years ago
6

A key difference between the APV, WACC, and FTE approaches to valuation is: how debt effects are considered; i.e. the target deb

t to value ratio and the level of debt. how the initial investment is treated. how the ratio of equity to debt is determined. how the unlevered cash flows are calculated. whether terminal values are included or not.
Business
1 answer:
Over [174]3 years ago
5 0

Answer: how debt effects are considered; i.e. the target debt to value ratio and the level of debt.

Explanation:

The Weighted Average Cost of Capital (WACC) values a project by using a discount rate that encompasses all the costs of raising capital. It therefore includes the effects of debt financing in that rate.

Adjusted Present Value (APV) on the other hand, takes the net present value of a project assuming it was solely financed by equity and then adds the present value of the benefits of debt financing such as interest tax shields and costs of debt issuance. Debt is therefore not included in the model like WACC and so considers the effects of debt differently.

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On-the-job training method would be most effective for training employees about ethical dilemmas and ethical decision making.

<h3>What is On-the-job training method?</h3>

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What effect might the government have on​ oligopolies? In​ oligopolies, the government might A. promote competition with a paten
fenix001 [56]

Answer:

C. impose barriers to entry with a​ copyright, which allows only the government to supply a good or service.

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The company has to record as revenue the product at the list price, then if exist a special discount on the price list, it must be record as discount applied to products in the Income Statement, separate of Revenue or Gross Sales.

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