Corporate Investment Appraisal (1 º Sem 2018/2019)

I call your attention for two new documents:

- There a paper (on PDF) with a detailed explanation of WACC TELUS to better support you on the complexity of calculating the WACC odf a company.

- There is an Excel that calculates the Residual Income and EVA. As I mentioned they should be equal. TELUS has three complexities:

1. Goodwill amortization that is not tax deductible

2. Non-controlling interests

3. The cost of debt as calculated in the case is not identifical to the financial statements.

In order residual income and EVA to give the same result, this three issues must be treated as evidenced in the spreadsheet.