Determining Discount Rate for Companies with Negative Initial Cash Flows and Future Growth
Wizenius
JUNE 25, 2023
Weighted Average Cost of Capital (WACC): Calculate the Weighted Average Cost of Capital (WACC), which represents the average rate of return required by the company's investors. Adjustments for Negative Cash Flows: Incorporate adjustments in the DCF analysis to account for the negative cash flows in the initial years.
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