- This topic has 2 replies, 2 voices, and was last updated 7 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
Hello Sir,
June 2014, exam question Q1, Cantor Group, evaluate EVA , when calculate WACC, but D/E ratio is 30%, how to calculate ?
Thanks
D/E of 30% means a ratio of debt 30, equity 100. Total capital employed is therefore 130. To calculate WACC you would therefore use
Cost of debt x 30/130 + Cost of equity x 100/130
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.