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re: Cost of DSO
Posted on 3/2/11 at 5:34 pm to Pheeze
Posted on 3/2/11 at 5:34 pm to Pheeze
quote:
Client's Avg Sales $$ Day X my company's WACC. Am I correct in this calculation?
wouldn't it be: (Avg Sales $/Day)x (average days outstanding)x(wacc)?
quote:
To do this, do I just multiply the calculation above for that client by 2?
(Avg Sales $/Day) x (average days outstanding) x (wacc) x (2)
I believe.
We have a few CPA's around here that might be more correct than I am.
1
Posted on 3/2/11 at 6:29 pm to TheHiddenFlask
quote:
wouldn't it be: (Avg Sales $/Day)x (average days outstanding)x(wacc)?
Essentially - but originally I was just calculating the unit cost (per day of DSO)
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