Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Weighted Average Cost of Capital
Weighted Average Cost of Capital or WACC is also called the overall or composite cost of capital. Since various capital components have different percentage cost, it is significant to determine a single average cost of capital attributable to different costs of capital. This can be determined on the basis of percentage cost of each capital component.
Market value weight or proportion of every capital component.
W.A.C.C = Ke (E/V) + Kp (P/V) + Kd (1+T) (D/V)
Whereas: Ke, Kp and Kd = Percentage cost of equity, preference debate capital and share capital respectively
E, P and D = Market value of equity, preference share capital and debt capital respectively.
NB: Market value = Market price of a security x Number of securities.
V = Total market value of the firm = E + P + D.
Financial Analysis Ratios ?
order to cash
As the Chief Financial Officer for the wholly Australian owned, Australian Stock Exchange listed company, Toy Show Ltd., an importer and manufacturer of a range of quality children
The average of the industry current ratio was 1.86 for 2004, 0.86 for 2005, and 0.87 for 2006. Lenovo had higher current ratio than the industry average in 2004. At that time, thei
Conservative Approach - Financing Current Assets An exact similar of asset life along with the life of the funds required to finance the asset may not be possible. A firm that
capital structure of 38% common stock and 62% debt. A debt issue of 1000 par value, 5.6% bonds that mature in 15 years and pay annual interest will sell for $979.dividends have gro
1 st bank offers you a car loan at an annual interest rate of 10% compounded monthly. What effective annual interest rate is the bank charging you? Solution - Calculate
Growth rate : The average of PC manufacturing industry growth rate was 22.24% for 2004, 20% for 2005, and 17.29% for 2006. It showed that the industry's growth rate has been declin
Advantages of Bonus Matter a) Tax advantages Shareholders can sell new shares, and create cash in form of capital gains such is tax exempt unlike cash dividends wh
how to do balance sheet
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd