Version of the Calculation Methodology of WACC for Banks in Ukraine
Journal Title: Бізнес Інформ - Year 2014, Vol 7, Issue 0
Abstract
In the article on the basis of analysis of the goals of functioning of banking institutions the main methods of valuation of banks were highlighted. The most effective methods are to use the income method by calculating the WACC. Using an existing formula for calculating WACC is not possible in the Ukrainian realities. In this connection, a procedure was developed for calculating WACC for banking institutions, adapted to the Ukrainian economy. The proposed method of calculation allows you to display the actual profitability of the bank, taking into account the inflation factor, the risk factor economical development of the country and the capital structure of the institution. The technique involves the assessment of WACC as with regard to the internal capabilities by the bank specialists, and also the calculation for foreign investors. The proposed method of calculating the WACC allows you to compare the results with a lower limit of return on assets and can be the basis for the calculation of the future cash flows of the bank as the main indicator of the goal of the banking institutions.
Authors and Affiliations
Olena Kononenko
Keywords
Related Articles
- EP ID EP110837
- DOI -
- Views 117
- Downloads 0
Theoretical basics of the essence of personnel potential at the economic branch level
The article highlights the author's vision of the essence of personnel potential that based on existing approaches to its treatment. The possibility of applying the term personnel potential at the economic branch level i...
Tools for Diagnosing and Selective Management of Development of the Socio-Economic Potential of Industrial Organization
The article is aimed at defining the characteristics of diagnosing development of the socio-economic potential of industrial organization (in the context of life cycle of the development of its structural elements). The...
Peculiarities of Establishing Corruption and Corruption-Countering Activities in the Sphere of Economy of Ukraine
The article considers the «organized corruption-related crime» in Ukraine as an independent socio-legal phenomenon - a kind of economic crime, which operates using corrupt ties to the Executive branch. Four stages of dev...
Methods of Assessment of Variants of Technical and Technological Renovation under Modern Conditions
The article marks out stages of planning of the moment of renovation, considers an algorithm of selection of the best variant of renovation out of alternative variants with consideration of such aspects as the degree of...
Social and Economic Monitoring as the Factor of Stable and Balanced Development of Region
Mechanisms of functioning of monitoring system of social and economic devel-opment of region are considered. It is allocated four levels of social and economic monitoring of regional development. Functionally system of m...