WACC

This topic has 1 reply, 2 voices, and was last updated 2 years ago by IAW3005.

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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
IAW3005
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No you should exclude retained earnings – there isn’t a cost of finance
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