• 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
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

BPP Black Friday sale! (28 Nov-1 Dec)

40% discount on all BPP books specially for OpenTuition students!
Get it here >>

WACC for Residual Income & EVA

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › WACC for Residual Income & EVA

  • This topic has 2 replies, 2 voices, and was last updated 11 years ago by elsie2009.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • October 13, 2014 at 7:27 am #204284
    elsie2009
    Member
    • Topics: 34
    • Replies: 61
    • ☆☆

    Good Morning

    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?

    Much appreciated.

    October 13, 2014 at 7:48 am #204285
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10617
    • ☆☆☆☆☆

    That is the correct way to calculate WACC.

    October 13, 2014 at 10:02 am #204292
    elsie2009
    Member
    • Topics: 34
    • Replies: 61
    • ☆☆

    Gromit you are wonderful, thank you for your time 🙂

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 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

  • unimkeabana on The nature and structure of organisations – ACCA Paper BT
  • Mahrukh on Risk and uncertainty (part 2) – ACCA (AFM) lectures
  • John Moffat on Depreciation Example 4 – ACCA Financial Accounting (FA) lectures
  • John Moffat on FM Chapter 9 Questions – Discounted cash flow – further aspects
  • DavidZell on Depreciation Example 4 – ACCA Financial Accounting (FA) lectures

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