Calculating WACC | WACC Calculation

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Calculating WACC | WACC Calculation
Krisztina
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%.
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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 WACCSign up
Mudedla Srinivas Kumar
Though your calculation seems O.K. factoring for C...
 

 
WACCSign up
Antonio Villa Mardon, Member
You need to modify the cost of equity as follows:<...
 

 
Response to Calculation of WACCSign up
bhavik, Member
Though the calculation is correct, you could have ...
 

 
WACC CalculationSign up
Muhammad Wasim, Member
As regards to this calculation, I got a result of ...
 

 
WACC CalculationSign up
Rishi R Koirala, Member
If you calculate the WACC the following way:
...
 

 
Calculation of WACCSign up
Blessing Katuka
Normally the following steps must be done to calcu...
 

 
Calculation of WACCSign up
Ahid Moghal, Member
I calculate using a tableau with 5 columns. That m...
 

 
 

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