Calculating WACC | WACC Calculation

WACC > Best Practices Premium

Calculating WACC | WACC Calculation
Krisztina, UK
I have been asked to calculate the WACC using the following info: Capital structure: Ordinary shares (fully paid) :1000000, preference shares: (11%) 400000, debentures: (10%) 600000. The ordinary share holders expect a divident of 14% per year. Corporate tax is estimated at 30%.
I did a bit of work on the above challenge, but I'm not sure if I'm on the right track... could someone point out if there are any mistakes? (600,000/2.000,000 * 10% * (1-30%)) + (400,000/2.000,000 * 11%) + (1.000,000/2.000,000 * 14%) = 19.2% Thank you for any help provided.

Calculation of WACC
Mudedla Srinivas Kumar, India

Antonio Villa Mardon, Economist, Peru

Response to Calculation of WACC
bhavik, Student (MBA), India

WACC Calculation
Muhammad Wasim, Student (MBA), Pakistan

WACC Calculation
Rishi R Koirala, Teacher, Nepal

Calculation of WACC
Blessing Katuka, Zimbabwe

Calculation of WACC
Ahid Moghal, Teacher, United Kingdom


    Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  

Special Interest Group Leader

You here

More on WACC

Best Practices
  • Calculating WACC | WACC Calculation

Expert Tips


About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 22-10-2016. All names tm by their owners.