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SAP® InternAtIonAl treASury MAnAgeMent ConferenCe 2010 June 28-30, 2010 Amsterdam, The Netherlands In Co-operation with: welcome SAP INTERNATIONAL TREASURY MANAGEMENT CONFERENCE AND PRECONFERENCE WORKSHOPS IN AMSTERDAM JUNE 28-30, 2010 With international financial markets still in a state of flux and fighting to make sense of the new order, many companies are taking the first tentative steps towards recovery and economic growth, but the fact remains that the need to optimize operational and financial efficiency is greater than ever. The treasury ...
This article, the first in the series, describes how to estimate the weighted average cost of capital (WACC) and the issues that need to be considered when doing so. If companies were entirely financed with equity, there would be little difficulty in determining its cost of capital: it would be the expected return required by shareholders. Most companies, however, are not wholly financed with equity. They tend to issue a variety of financing instruments, including debt, equity and hybrids. Due to this financing mix, companies usually calculate a weighted average cost of capital (WACC). ... Read More