£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

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!

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

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

Excellent video. Thank you!

Thank you it was very easy to understand

great 😉

Why 1-0.04 for tax portion and not 0.04 since tax rate is 40%?

For the tax portion, why are we taking 1-0.04 when rate is 40%? Why not just multiply by 0.04?

RIP X and Mac miller

This video is WACC!

bro…. i legit love you <3

Not helpful when numbers are given

£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?

Wow I wish I would be given all the numbers like this in an exam!

too much talking and not on the point please be short simple and to the point

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!

I think maybe we can translate the equation into wacc=（E*Re+D*Rd*（1-t））/（D+E）

Thanks !

👍

Your videos are just brilliant!

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

WACC is wack

Excellent! now i get the concept

Superb!