<t>At least answer me this.Do we use the current market cap in deriving the weight of equity in the WACC? Or use an iterative process whereby the arrived at value keeps replacing the market value of equity in the WACC until a steady state has been reached? Then use a gradual convergence towards the ...

<t>I thought I'd bring my inquiries here.Let's talk theory first, and let's start with discount rates before moving on.In determining the market value of equity, you need to first calculate the market value of all operating and non-operating assets, then subtract all non-common equity claims to get ...

Greatly depends on the country you're in. But generally, it's a forward looking estimate. You can use the implied market return from an index for example. Or use historical. Then project the RfR going forward.It's much harder than it sounds, but that's the general idea.

So if I remove the effects of the drop in crude oil by 25% (for example) during a certain quarter by readjusting the current import nominal value upwards, then I get the real import value for petroleum products?

<t>I've been facing a problem at work, mostly relating to 'real' values of economic measure.Ok, so we know that real GDP accounts for increases due to inflation. But why do we use constant prices of goods to measure real GDP growth? How do we account for increases in real price that is not due to in...