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Weighted Average Cost of Capital (WACC)
  • Weighted Average Cost of Capital (WACC)
Originally published: 25/07/2016 11:44
Publication number: ELQ-53963-1
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Weighted Average Cost of Capital (WACC)

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

Prof. Kerry Backby Prof. Kerry Back
Professor of Finance at Rice UniversityFollow 58
Rice Universitywith Rice University
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28 reviews3,892 views|Start the discussion!|Bookmark download for free
financeequitycapitalwacc
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

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


4.8 / 5 (28 votes)

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