anonymous
  • anonymous
If we'r not given the WACC. What can be used as good proxy for the WACC?
Finance
  • Stacey Warren - Expert brainly.com
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SOLVED
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katieb
  • katieb
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anonymous
  • anonymous
Use the industry average cost of capital for the sector, if you are in a hurry. And remember that you are never given the cost of capital for any company. You have to estimate it.
anonymous
  • anonymous
But how do we estimate the wacc for subsidiary company for which we'r not given the balance sheet and income statement i.e (timken case study)? Plus we'r not given the market risk premium as well.
anonymous
  • anonymous
Use the industry average for the sector that the sub belongs to...

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anonymous
  • anonymous
We are not given the tax rate and the market premium. how do we estimate the industry average? By using comparable companies in that sector?

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