WACC - Putting it all Together 4 / 4

WACC - Putting it all Together

So, you have studied all the bits in isolation, here’s where we get sexy and bring it all together..

So, this is kind of the proforma you need to set up, when you get a “Calculate the WACC..” question

DEBT/EQUITYCOSTMarket Value“Interest”
Equity10% 1,000100
Loan6%80048
Total1,800148

So we have paid “interest’ of 148 on capital of 1,800…

So the WACC is 148/1,800 = 8.2%

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