• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

WACC

Forums › ACCA Forums › ACCA FM Financial Management Forums › WACC

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by mrjonbain.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 15, 2022 at 3:34 pm #662835
    FLORIDAMAN
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Why is Retained Earnings not included as a part of Equity in the calculation of WACC ?
    Can someone please explain this to me clearly.

    In the question that i am doing, ordinary shares are included, preference shares are included but retained earnings are not included in the calculation. Why is that?

    August 16, 2022 at 9:31 pm #663215
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2478
    • ☆☆☆☆☆

    Welcome to the Opentuition forums. Usually market value or some estimate of what market value would be is used in this calculation. Since this is the case, the value of retained earnings has already been taken into account in existing figure. Trying to include them would be double counting. Hope this helps.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • umangkumbhat on What is Assurance? – ACCA Audit and Assurance (AA)
  • ahmadhoney on How to register with ACCA?
  • John Moffat on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in