Can I check my understanding of Wacc if initial calculations using the book values of debt & equity.
The book value of debt is $1,500 and book value of equity as total assets less total liabilities – $15,400. Equity Cost of capital is 15% and Interest 10%.
If I use these figures I get a WACC of 14.29%
Kd (1-T) * Vd (0.07 * 8.9) = 0.623 Ke * Ve (0.15 * 91.1) = 13.665
I also get the same when I use the F9 WACC formulae from your notes, is this the correct method?