Session 12: Estimating Hurdle Rates - Debt & its Cost

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  • เผยแพร่เมื่อ 16 ม.ค. 2025

ความคิดเห็น • 8

  • @nickfleming3719
    @nickfleming3719 4 ปีที่แล้ว +9

    An update since this video was made: now companies have to report capital lease obligations as debt

  • @MrTy1984
    @MrTy1984 ปีที่แล้ว +1

    Amazing teacher

  • @AtlanticMixtape
    @AtlanticMixtape 4 ปีที่แล้ว +3

    Why are you not using the actual cost of debt? (companies specify this in the notes of their financial statements)

    • @morphan7731
      @morphan7731 4 ปีที่แล้ว

      look when this video was published

    • @jip_8826
      @jip_8826 4 ปีที่แล้ว +5

      This was answered at 4:08 and 4:50 . The historical cost of debt (what you are calling the "actual" cost of debt) does not represent what rate the company can borrow at today.

  • @SaranshKRaj
    @SaranshKRaj 4 ปีที่แล้ว +1

    If the company is high on debt is it suitable to use unlevered beta as it is creating a difference of 10% in my case.

  • @Happiness_unlimited
    @Happiness_unlimited 10 ปีที่แล้ว +2

    Does the look up table information includes the industry specific requirements.

  • @nickfleming3719
    @nickfleming3719 4 ปีที่แล้ว

    If a company has debt in foreign currency, how do you figure out its effects on the cost of debt in their home currency?