Originally published: 25/07/2016 11:44
Publication number: ELQ-53963-1

Weighted Average Cost of Capital (WACC)

A model for calculating Weighted Average Cost of Capital using beta's for equity

by Prof. Kerry Back
Professor of Finance at Rice University

18 reviews1,593 views|Start the discussion!|download for free

Description
The user must define the following inputs:
- Amount of equity
- Amount of debt
- Tax rate
- Equity beta
- Percentage Debt
- Percentage Equity
- Tax rate
- Cost of debt

This Best Practice includes
1 Excel Model

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Further information

Objectives

Outputs:
- After-tax cost of debt
- Cost of equity
- Weighted average cost of capital

Reviews

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