anonymous
  • anonymous
Aswath: Why do you use a cumulative WACC in your 3-stage FCFF model?
Finance
jamiebookeater
  • jamiebookeater
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anonymous
  • anonymous
If your cost of capital changes over time, you have to look at the cumulated cost of capital. A year-specific cost of capital is like a forward rate for that year...
anonymous
  • anonymous
That makes sense. Thank You
anonymous
  • anonymous
I do have one question: What exactly do you mean by a forward rate for that year? In regards to the year-specific cost of capital

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