22 thoughts on “Weighted Average Cost of Capital (WACC)

  1. we got given a gearing ratio and had to work out the wacc for each gearing % or something now im even more confused lol

  2. £20M Market Cap – shares trading at 10p per share. 
    Cost of equity is calculated at 16%
    £10M  12% irredeemable preference shares trading at par
    £10M Bank loan at 10% Corp tax is 30% so 7% after tax

    Calculate WACC

    Can somebody help me with this question?

  3. Thank you!! The video chat my professor did cut out during this part of the lesson. This may have saved my but. Easy to understand and to the point. Subbed!

  4. well the problem is, in the exam you dont get all the numbers like you have given here, to solve the problem.

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