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WACC

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › WACC

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • September 6, 2016 at 6:33 am #338173
    awais143
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    I would like to ask about the debt/equity
    In exam if its written ”debt/equity 40%”, so what does it means if we are calculating WAAC then how much is the debt and how much is equity?

    Thanks

    September 6, 2016 at 8:42 am #338190
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10599
    • ☆☆☆☆☆

    Debt/equity 40% = 40 debt to 100 equity; total capital = 140

    For WACC weight Kd with 40/140 and Ke with 100/140.

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