Calculating WACC | WACC Calculation

WACC
Knowledge Center

 

Next Topic

WACC > Best Practices > Calculating WACC | WACC Calculation

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%. --- 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. (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


  Calculation of WACC
Mudedla Srinivas Kumar
  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.

  WACC
Antonio Villa Mardon, Economist, Peru, Member
  (...)

  Response to Calculation of WACC
bhavik
  (...)

  WACC Calculation
Muhammad Wasim, Student (MBA), Pakistan, Member
  (...)

  WACC Calculation
Rishi R Koirala, Teacher, Nepal, Member
  (...)

  Calculation of WACC
Blessing Katuka
  (...)

  Calculation of WACC
Ahid Moghal, Teacher, United Kingdom, Member
  (...)

   
Special Interest Group Leader

Interested? Sign up for free.


WACC
Summary
Forum
🔥Weighted Marginal Cost of Capital
Importance of WACC for Unquoted Organisation?
Why WACC? Importance
Best Practices
Calculating WACC | WACC Calculation
🥈Calculation of Relevant Risk Premium is Tricky


WACC
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.5 - Last updated: 7-6-2020. All names of their owners.