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WACC

This topic has 1 reply, 2 voices, and was last updated 8 months ago by LMR1006.

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March 11, 2024 at 1:45 pm #702783
Rahulvinu
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When dealing with a WACC question using book values, should we include retained earnings for the calculation? And if thats the case, what cost of capital do we attach to it? The cost of equity?
March 11, 2024 at 6:10 pm #702837
LMR1006
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No you should exclude retained earnings – there isn’t a cost of finance
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