 # Calculating WACC | WACC Calculation WACCKnowledge Center Next Topic  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. Mudedla Srinivas Kumar 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 Mardon, Economist, Peru WACC You need to modify the cost of equity as follows: (...) bhavik Response to Calculation of WACC Though the calculation is correct, you could have (...)  Muhammad Wasim, Student (MBA), Pakistan WACC Calculation As regards to this calculation, I got a result of (...)  Rishi R Koirala, Teacher, Nepal WACC Calculation If you calculate the WACC the following way: 600, (...) Blessing Katuka Calculation of WACC Normally the following steps must be done to calcu (...)  Ahid Moghal, Teacher, United Kingdom Calculation of WACC I calculate using a tableau with 5 columns. That m (...)

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