proxy

Examples of proxy in the following topics:

• Problems with WACC

  • Problems arise in calculating components of WACC because differing methods and proxy values result in widely varying costs of capital.
  • In calculating each component, we are given many different options and proxy values.

• Discounted Dividend vs. Corporate Valuation

  • Consider the dividend growth rate as a proxy for the growth of earnings and by extension the stock price and capital gains.
  • Consider the company's cost of equity capital as a proxy for the investor's required total return.

• Advantages and Disadvantages of VC Financing

  • Venture capital is also associated with job creation (accounting for 2% of US GDP), the knowledge economy, and used as a proxy measure of innovation within an economic sector or geography.

• Market Reporting

  • A 'national' index represents the performance of the stock market of a given nation—and by proxy, reflects investor sentiment on the state of its economy.

• The Cost of Debt

  • The yield to maturity of a bond is another proxy we can use in determining the cost of debt.

• Types of Transactions

  • Transaction costs include fees for preparation of a proxy statement, an extraordinary shareholder meeting, and registration.