About WACC estimationForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › About WACC estimationThis topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts May 10, 2023 at 11:02 am #684136 FelixParticipantTopics: 8Replies: 6☆When I calculate WACC’s debt and equity proportions, should I use D/E+D or D(1-T)/E+D(1-T) ?I surely know that asset beta should be equal to equity beta x E/E+D(1-T). May 10, 2023 at 4:33 pm #684159 John MoffatKeymasterTopics: 57Replies: 54628☆☆☆☆☆The two things are separate issues.When calculating the WACC we always use the actual proportions (based on MV’s) i.e. E/(E+D) and D/(E+D).Do watch my free lectures on this because it is all explained in the lectures. May 10, 2023 at 5:18 pm #684164 FelixParticipantTopics: 8Replies: 6☆Dear Mr. Moffat,Thank you so much for your clarification. I do watch your free lectures for exam preparation. You’re really a brilliant teacher in the field of ACCA professional exam.Kindest Regards, Felix May 11, 2023 at 5:31 am #684188 John MoffatKeymasterTopics: 57Replies: 54628☆☆☆☆☆Thank you very much for your comment 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)The topic ‘About WACC estimation’ is closed to new replies.