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	<title>Strategy @ Risk &#187; WACC</title>
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  <title>Strategy @ Risk</title>
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		<item>
		<title>The corn and ethanol futures hedge ratios</title>
		<link>http://www.strategy-at-risk.com/2011/12/01/the-corn-and-ethanol-futures-hedge-ratios/</link>
		<comments>http://www.strategy-at-risk.com/2011/12/01/the-corn-and-ethanol-futures-hedge-ratios/#comments</comments>
		<pubDate>Thu, 01 Dec 2011 21:26:34 +0000</pubDate>
		<dc:creator>S@R</dc:creator>
				<category><![CDATA[Balance sheet and P&L simulation]]></category>
		<category><![CDATA[Decision making]]></category>
		<category><![CDATA[Hedging]]></category>
		<category><![CDATA[Basis]]></category>
		<category><![CDATA[Continuous contract]]></category>
		<category><![CDATA[Corn]]></category>
		<category><![CDATA[Ethanol futures]]></category>
		<category><![CDATA[FRM]]></category>
		<category><![CDATA[futures]]></category>
		<category><![CDATA[Futures contract]]></category>
		<category><![CDATA[Hedge]]></category>
		<category><![CDATA[hedge ratios]]></category>
		<category><![CDATA[Inverse regression]]></category>
		<category><![CDATA[Marked to market]]></category>
		<category><![CDATA[Minimum variation hedge]]></category>
		<category><![CDATA[Minimum-variance hedge]]></category>
		<category><![CDATA[Monte Carlo simulation]]></category>
		<category><![CDATA[OLS]]></category>
		<category><![CDATA[Settlement variations]]></category>
		<category><![CDATA[Simple regression]]></category>
		<category><![CDATA[Spot prices]]></category>
		<category><![CDATA[Tailed hedge]]></category>
		<category><![CDATA[The number of futures contracts]]></category>
		<category><![CDATA[Variance ratio]]></category>
		<category><![CDATA[WACC]]></category>
		<category><![CDATA[Weighted regression]]></category>

		<guid isPermaLink="false">http://www.strategy-at-risk.com/?p=2490</guid>
		<description><![CDATA[We are here looking for hedge models and hedge ratio estimations techniques that are “good enough” and that can fit into valuation models using Monte Carlo simulation. The model have to be dynamic in the sense that as new data (contracts) becomes available it can read the data, perform the necessary statistical analysis, produce the hedging coefficients and do the simulations – in one go.    ]]></description>
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		<slash:comments>0</slash:comments>
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		<title>WACC, Uncertainty and Infrastructure Regulation</title>
		<link>http://www.strategy-at-risk.com/2010/02/08/wacc-and-infrastructure-regulation/</link>
		<comments>http://www.strategy-at-risk.com/2010/02/08/wacc-and-infrastructure-regulation/#comments</comments>
		<pubDate>Mon, 08 Feb 2010 16:18:44 +0000</pubDate>
		<dc:creator>S@R</dc:creator>
				<category><![CDATA[Balance sheet simulation]]></category>
		<category><![CDATA[Costs]]></category>
		<category><![CDATA[Inflation]]></category>
		<category><![CDATA[Interest rates]]></category>
		<category><![CDATA[Modelling]]></category>
		<category><![CDATA[Uncertainty]]></category>
		<category><![CDATA[Capital cost]]></category>
		<category><![CDATA[Cost of debt]]></category>
		<category><![CDATA[Cost of equity]]></category>
		<category><![CDATA[Fan Charts]]></category>
		<category><![CDATA[FRM]]></category>
		<category><![CDATA[Infrastructure Regulation]]></category>
		<category><![CDATA[Telecom]]></category>
		<category><![CDATA[WACC]]></category>

		<guid isPermaLink="false">http://www.strategy-at-risk.com/?p=1525</guid>
		<description><![CDATA[Calculating Wacc for a company for a number of years into the future is not a trivial task. Wacc is no longer a single value, but a time series with values varying from year to year. ]]></description>
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		<slash:comments>2</slash:comments>
		</item>
		<item>
		<title>The weighted average cost of capital</title>
		<link>http://www.strategy-at-risk.com/2008/09/08/the-weighted-average-cost-of-capital/</link>
		<comments>http://www.strategy-at-risk.com/2008/09/08/the-weighted-average-cost-of-capital/#comments</comments>
		<pubDate>Mon, 08 Sep 2008 21:00:33 +0000</pubDate>
		<dc:creator>S@R</dc:creator>
				<category><![CDATA[Balance sheet simulation]]></category>
		<category><![CDATA[Capital cost]]></category>
		<category><![CDATA[Cost of debt]]></category>
		<category><![CDATA[Cost of equity]]></category>
		<category><![CDATA[Debt]]></category>
		<category><![CDATA[Equity]]></category>
		<category><![CDATA[ERM]]></category>
		<category><![CDATA[FRM]]></category>
		<category><![CDATA[Monte Carlo]]></category>
		<category><![CDATA[Stochastic simulation]]></category>
		<category><![CDATA[WACC]]></category>

		<guid isPermaLink="false">http://www.strategy-at-risk.com/test/?p=184</guid>
		<description><![CDATA[The weighted cost of capital (WACC) and the return on invested capital (ROIC) are the most important elements in company valuation, and the basis for most strategy and performance evaluation methods.]]></description>
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		<slash:comments>2</slash:comments>
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