Publications [#302929] of Joseph Tham

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Other Working Papers

  1. Tham, J; Velez-Pareja, I. "The Correct Formula for the Return to Levered Equity (for Finite Cash Flows with Zero Growth) with Respect to the M&E WACC."   (March, 2005).
    (last updated on 2020/08/05)

    Abstract:
    In this note, we show that with respect to the Miles and Ezzell (M&E) Weighted Average Cost of Capital (WACC), the return to levered equity for finite cash flows is constant if the debt-equity ratio is constant. We assume that the reader is familiar with the M&E WACC. The expression that we derive is not new. We hope that our straightforward derivation with simple algebra makes the M&E WACC more widely known.

Joseph Tham