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FUENTE: http://www.investopedia.com/terms/w/wacc.asp
The WACC equation is the cost of each capital component multiplied by its
proportional weight and then summing:
Where:
Re = cost of equity
Rd = cost of debt
E = market value of the firm's equity
D = market value of the firm's debt
V=E+D
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
Tc = corporate tax rate
Businesses often discount cash flows at WACC to determine the Net Present
Value (NPV) of a project, using the formula:
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NPV = Present Value (PV) of the Cash Flows discounted at WACC.
A firm's WACC is the overall required return on the firm as a whole and, as
such, it is often used internally by company directors to determine the
economic feasibility of expansionary opportunities and mergers. It is the
appropriate discount rate to use for cash flows with risk that is similar to that
of the overall firm.
The WACC equation is the cost of each capital component multiplied by its
proportional weight and then summing:
Where:
2
Re = cost of equity
Rd = cost of debt
E = market value of the firm's equity
D = market value of the firm's debt
V=E+D
E/V = percentage of financing that is equity
D/V = percentage of financing that is debt
Tc = corporate tax rate
Businesses often discount cash flows at WACC to determine the Net Present
Value (NPV) of a project, using the formula:
A firm's WACC is the overall required return on the firm as a whole and, as
such, it is often used internally by company directors to determine the
economic feasibility of expansionary opportunities and mergers. It is the
appropriate discount rate to use for cash flows with risk that is similar to that
of the overall firm.
VIDEO: http://www.youtube.com/watch?v=JKJglPkAJ5o
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foreign trade
Credit Modalities
Fixed investment
This credit line finances investments in fixed necessary for products and
services production or commercialization processes, and to increase the
installed capacity, to develop industrial reconversion processes and
technological improvement of micro, small, medium and large enterprises
from all economic sectors.
Leasing
Through this mechanism Bancoldex provides funds for financial entities for
the amount of the financial leasing contracts entered into with micro, small,
medium and large enterprises from all economic sectors, in connection with
goods used for manufacturing or commercializing their products or services.
Working capital
This credit line finances operational costs and expenses inherent to the
economic activity of enterprises such as raw materials, inventories, promotion
activities oriented towards entering, broadening or consolidating markets,
among others.
It is available for micro, small, medium and large enterprises from all
economic sectors.
Consolidation of liabilities
This credit line allows the re-composition of liabilities of micro, small, medium
and large enterprises from all economic sectors, with Bancoldex resources, of
their liabilities in force, in order to improve term conditions, rate or recurrent
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payment intervals.
Aiming to focus financial support for the entrepreneurial sector, the Bank has
entered into several agreements with governmental entities such as
ministries, regional government offices, city halls, international cooperation
agencies, among others, in order to establish Special Credit Limits to provide
liquidity in pesos and or in dollars for different entrepreneurial sectors, in
accordance with their geographic location, their size or the destination of
resources, offering preferential financial conditions. These special Credit
Limits contemplate, as the case may be, limits for maximum financial
amounts for each company, as well as compliance of specific conditions to
have access to resources.
Bancoldex Capital Program promotes the private equity and venture capital
industry in Colombia
Program Components
Main objectives
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Attract new investors, local and foreign, to participate in the private
equity industry in the country
FUENTE: http://www.bancoldex.com/portal_ingles/Products-and-
services/Foreign-trade.aspx
Foreign trade
Credit Modalities
Fixed investment
This credit line finances investments in fixed necessary for products and
services production or commercialization processes, and to increase the
installed capacity, to develop industrial reconversion processes and
technological improvement of micro, small, medium and large enterprises
from all economic sectors.
Leasing
Through this mechanism Bancoldex provides funds for financial entities for
the amount of the financial leasing contracts entered into with micro, small,
medium and large enterprises from all economic sectors, in connection with
goods used for manufacturing or commercializing their products or services.
Working capital
This credit line finances operational costs and expenses inherent to the
economic activity of enterprises such as raw materials, inventories, promotion
6
activities oriented towards entering, broadening or consolidating markets,
among others.
It is available for micro, small, medium and large enterprises from all
economic sectors.
Consolidation of liabilities
This credit line allows the re-composition of liabilities of micro, small, medium
and large enterprises from all economic sectors, with Bancoldex resources, of
their liabilities in force, in order to improve term conditions, rate or recurrent
payment intervals.
Aiming to focus financial support for the entrepreneurial sector, the Bank has
entered into several agreements with governmental entities such as
ministries, regional government offices, city halls, international cooperation
agencies, among others, in order to establish Special Credit Limits to provide
liquidity in pesos and or in dollars for different entrepreneurial sectors, in
accordance with their geographic location, their size or the destination of
resources, offering preferential financial conditions. These special Credit
Limits contemplate, as the case may be, limits for maximum financial
amounts for each company, as well as compliance of specific conditions to
have access to resources.
Bancoldex Capital Program promotes the private equity and venture capital
industry in Colombia
Program Components
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Financial support: investment in Private Equity and Venture Capital Funds.
Bancoldex does not invest directly in companies
Main objectives
Attract new investors, local and foreign, to participate in the private equity
industry in the country.
8
What is Breakeven Point?
A company's breakeven point is the point at which its sales exactly cover its
expenses. The company sells enough units of its product to cover its
expenses without making a profit or taking a loss. If it sells more, then it
makes a profit. On the other hand, if it sells less, it takes a loss.
In this formula, fixed costs are stated as a total -- the total fixed costs for the
firm. Basically, this means the total overhead for the firm. Price and variable
costs, however, are stated as per unit costs - the price for each product sold
and the variable cost for that unit of the product. The denominator of the
equation, price minus variable costs, is called the contribution margin. In other
words, this is the amount, per unit of product sold, that the firm can contribute
to paying its fixed costs.
XYZ Corporation has calculated that it has fixed costs that consist of its lease,
depreciation of its assets, executive salaries, and property taxes. Those fixed
costs add up to $60,000. Their product is the widget. Their variable costs
associated with producing the widget are raw material, factory labor, and
sales commissions. Variable costs have been calculated to be $0.80 per unit.
The widget is priced at $2.00 each.
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Given this information, we can calculate the breakeven point for XYZ
Corporation's product, the widget
FUENTE:
http://bizfinance.about.com/od/pricingyourproduct/a/Breakeven_Point.htm
A company's breakeven point is the point at which its sales exactly cover its
expenses. The company sells enough units of its product to cover its
expenses without making a profit or taking a loss. If it sells more, then it
makes a profit. On the other hand, if it sells less, it takes a loss.
In this formula, fixed costs are stated as a total -- the total fixed costs for the
firm. Basically, this means the total overhead for the firm. Price and variable
costs, however, are stated as per unit costs - the price for each product sold
and the variable cost for that unit of the product. The denominator of the
equation, price minus variable costs, is called the contribution margin. In other
words, this is the amount, per unit of product sold, that the firm can contribute
to paying its fixed costs.
10
XYZ Corporation has calculated that it has fixed costs that consist of its lease,
depreciation of its assets, executive salaries, and property taxes. Those fixed
costs add up to $60,000. Their product is the widget. Their variable costs
associated with producing the widget are raw material, factory labor, and
sales commissions. Variable costs have been calculated to be $0.80 per unit.
The widget is priced at $2.00 each.
Given this information, we can calculate the breakeven point for XYZ
Corporation's product, the widget.
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