 # Calculating WACC | WACC Calculation Example WACCKnowledge Center Krisztina, UK

Calculating WACC | WACC Calculation Example

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. Mudedla Srinivas Kumar, India Calculation of WACC Though your calculation seems O.K. factoring for Cost of Equity would have made your calculation more refined. which is as follows: Cost of Equity should be : Risk Free return + Beta*Market price.  Antonio Villa MardonEconomist, Peru WACC You need to modify the cost of equity as follows: ... bhavik, India Response to Calculation of WACC Though the calculation is correct, you could have ...  Muhammad WasimStudent (MBA), Pakistan WACC Calculation As regards to this calculation, I got a result of ...  Rishi R KoiralaTeacher, Nepal WACC Calculation If you calculate the WACC the following way: 600,... Blessing Katuka, Zimbabwe Calculation of WACC Normally the following steps must be done to calcu...  Ahid MoghalTeacher, United Kingdom Calculation of WACC I calculate using a tableau with 5 columns. That m... Leave a comment?

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