Question: If you are using the WACC approach to value a companys equity (S), why do you generally need to add back cash in the final

If you are using the WACC approach to value a companys equity (S), why do you generally need to add back cash in the final step to calculate S?

A shareholder who receives rights to buy shares from a company raising new capital through a rights offerings is

The APV methodology is designed to explicitly recognize the value of financing effects. Sometimes firms can be persuaded to shift operations to a location where the government enables the firm to borrow money at below-market interest rates. The non-market rate financing impact on the APV in these situations is:

Company X has a single bond issue outstanding. Yesterday after the market closed the company's CEO revealed the SEC was investigating the company for accounting irregularities. The perceived credit quality of the company has deteriorated due to the announcement. All else constant, what would you expect to happen to the WACC used by Company X to evaluate its projects?

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If you are using the WACC approach to value a companys equity (S), why do you generally need to add back cash in the final step to calculate S?

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