In this paper, we revisit a frequently employed simplification within the WACC approach that company cost of capital kV is supposed to be invariant to the debt ratio and therefore equal to the unlevered cost kU . Even though we know from Miles and Ezzell (1980) that kV formally differs from kU ,...

The primary research purpose of this study is to identify the most popular valuation models that analysts use to derive their target prices for firms with going-concern issues.The study conducts a structured content analysis of both auditors’ and analysts’ reports for a sample of UK-listed...