Question

Explain how Covid-19 would affect WACC?

Explain how Covid-19 would affect WACC?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Due to covid-19, The weighted average cost of capital will be expected to take huge fluctuations because it has to be adjusted with the risk adjustment, in need to have an appropriate view of the total rask companies will be able to bear in current crisis due to covid-19.

There is a practice of risk adjusting of weighted average cost of capital in order to ascertain better rate to find out the overall budgeting decisions hence the weighted average cost of capital need to be adjusted with high risk premium in order to invest into different projects and ascertained viability.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
how the covid-19 affect the oil market
how the covid-19 affect the oil market
What are your thoughts on how the global pandemic with respect to Covid-19 will affect Amazon...
What are your thoughts on how the global pandemic with respect to Covid-19 will affect Amazon valuations？Please explain it in as much detail as possible.
How does COVID-19 pandemic affect CO2 emissions? Use appropriate model and diagram to explain it. (Hint:...
How does COVID-19 pandemic affect CO2 emissions? Use appropriate model and diagram to explain it. (Hint: Positive externality) In the short run, do you think the benefits of the cleaner atmosphere is important?
Explain how the yield curve would behave, generally, during the Covid -19? [Hint: Observe the yield...
Explain how the yield curve would behave, generally, during the Covid -19? [Hint: Observe the yield curve in many different countries and share your views
How does coronavirus affect exchange rate markets? Is COVID-19 a shift factor of demand and supply...
How does coronavirus affect exchange rate markets? Is COVID-19 a shift factor of demand and supply for the US Dollar?
Explain how the COVID-19 affects the fiscal balance of a government for the year.
Explain how the COVID-19 affects the fiscal balance of a government for the year.
a) The Minister of Finance suggests that the COVID-19 has affected the fiscal gap. Explain how...
a) The Minister of Finance suggests that the COVID-19 has affected the fiscal gap. Explain how the COVID-19 affects the fiscal balance of the government for the year.
discuss how COVID-19 will affect your (as an Audit Manager) audit planning, execution and reporting: a....
discuss how COVID-19 will affect your (as an Audit Manager) audit planning, execution and reporting: a. Risk Assessment b. Audit Planning and Audit Strategy c. Going concern assessment d. Audit Opinion
How does the Covid-19 pandemic process affect the forecasting activities of businesses? What are the sources...
How does the Covid-19 pandemic process affect the forecasting activities of businesses? What are the sources of deviations that may occur in forecasts and what are the effects of these deviations on businesses? Provide business examples and evaluate them comprehensively.
What effect would COVID- 19 have on returning Nursing Students? effect would COVID- 19 have on...
What effect would COVID- 19 have on returning Nursing Students? effect would COVID- 19 have on returning Nursing Students?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT