Geometric mean as the average
Since Weighted average-of-relatives index is calculated by taking geometric mean as average therefore the formula of geometric mean will be used. The calculation is shown in the table given below.
Summary of Results
Pages: 1 2
firm-x
EBIT- 200000
I – 20000
KE – 12%
NOW WHAT IS THE WACC FOR THIS FIRM
I need to understand when weighted averages can be applied and when unweighted averages can be applied.
To my earlier question i understand now that when the weight is given we may apply the weighted average and when not we apply un weighted. Can you still clarify in its application. An example that we make it clear unwhat scenerio to use weighted and unweighted.
Thank you though. This is a great job.
how are v1,,v2 and v3 calculated
1) When the Weighted Average of relative is greater than Weighted Aggregate of relative, what is the implication?
2) When the Weighted Average of relative is less than Weighted Aggregate of relative, what is the implication?
3) When the Weighted Average of relative is equal to Weighted Aggregate of relative, what is the implication?
Good work.
Can you give us an example involves simple index while calculating average weighted index?