Using the cost of capital or WACC as the divisional or project hurdle rate Using the cost of capital or WACC as the divisional or project hurdle rate for evaluating divisions or projects is a very prevalent practice in corporate organizations. WACC is a company's overall cost of capital, with each...
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WACC for Woodside Petroleum WACC for Woodside Petroleum is 4.74%. WACC is calculated using the following formula: WACC = D/V (1-t)Kd + E/V Ke where D is the market value of the debt. E = equity market value V denotes the firm's market value. Kd = debt cost Ke = equity cost of capital T stands for tax...
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When a company's costs rise, so does its profit margin. As a result, the associated expenditures must be reduced as much as possible. When costs are low, profits are high. A budget is supplied to avoid under- or over-estimation of the relevant expense. An operating budget will provide predictions of...
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While it is obvious that the price of an item influences the demand curve, customer likes and preferences can also influence demand. The supply and demand for goods and services is a key notion in economics, influencing all elements of the market economy. The purpose of this article is to...
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According to Sandborn, 2017, Activity-based costing (ABC) is described as an accounting technique involving company s activities and cost allocation to every products and services capital activities based on concrete utilization. More accurately, ABC ascribes indirect costs to direct cost goods. Moreover, ABC outline resources usage and costly ultimate outcomes,...
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