WACC calculation

This topic has 2 replies, 2 voices, and was last updated 9 years ago by tarbu.

Viewing 3 posts - 1 through 3 (of 3 total)

Author

Posts
February 21, 2017 at 5:14 pm #373545
tarbu
Member
- Topics: 6
- Replies: 4
Hello Sir,

June 2014, exam question Q1, Cantor Group, evaluate EVA , when calculate WACC, but D/E ratio is 30%, how to calculate ?

Thanks
February 22, 2017 at 9:27 am #373617
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10660
D/E of 30% means a ratio of debt 30, equity 100. Total capital employed is therefore 130. To calculate WACC you would therefore use

Cost of debt x 30/130 + Cost of equity x 100/130
February 24, 2017 at 7:10 pm #374065
tarbu
Member
- Topics: 6
- Replies: 4
Thanks you so much Sir, WACC explanation. I am very clear and can calculate these whatever come up in question.
Author

Posts

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.