

Valuation Distortion from WACC Misclassification
Key Points: Naïve WACC (7.0%) overvalues the enterprise by $530m compared to refined WACC (8.8%). Same cash flows and growth rate, but...


The Impact of Hybrid Capital Classification on Valuation
Key Points: Naïve approach (100% debt treatment) yields a 7.0% WACC. Refined approach splits hybrids into debt-leg (4% cost) and...