RAWACC vs Changing Co WACC

by | Aug 10, 2026 | General

RAWACC is not the same as changing a company’s existing WACC. RAWACC is a project-specific cost of capital used to appraise a project. It applies when both of the following conditions are met: 1) The project’s business risk is materially different from the company’s...

OFR is Your Friend

by | Aug 5, 2026 | General

Please keep in mind that the ‘Own Figure Rule’ (OFR) is your friend.  Let me give two examples.  1) If you are trying to compute the WACC and you need to find a new equity beta. If you can’t complete that due to time. Simply, assume a number for the equity...