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Uploaded by Jemimah Serquina

WACC

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π‘Šπ΄πΆπΆ = (
𝐸
𝐷
∗ 𝑅𝑒 ) + [ (
∗ 𝑅𝑑 ) ∗ ( 1 − 𝑇𝑐 ) ]
𝐷+𝐸
𝐷+𝐸
where:
WACC = weighted average cost of capital,
Re = cost of equity,
Rd = cost of debt,
E = market value of the company's equity,
D = market value of the company's debt,
Tc = corporate tax rate.
75,000,000
75,000,000
π‘Šπ΄πΆπΆ = (
∗ 10.1% ) + [ (
∗ 3.5% ) ∗ ( 1 − 18% ) ]
25,000,000 + 75,000,000
25,000,000 + 75,000,000
π‘Šπ΄πΆπΆ = (75% ∗ 10.1%) + [ 25% ∗ 3.5 ∗ ( .82 ) ]
π‘Šπ΄πΆπΆ = 0.07575 + 0.007175
𝑾𝑨π‘ͺπ‘ͺ = πŸ–. πŸπŸ—%
πΆπ‘œπ‘ π‘‘ π‘œπ‘“ π‘ƒπ‘Ÿπ‘’π‘“π‘’π‘Ÿπ‘Ÿπ‘’π‘‘ π‘†π‘‘π‘œπ‘π‘˜ =
𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 π‘ƒπ‘’π‘Ÿ π‘†β„Žπ‘Žπ‘Ÿπ‘’
π‘€π‘Žπ‘Ÿπ‘˜π‘’π‘‘ π‘ƒπ‘Ÿπ‘–π‘π‘’ π‘π‘’π‘Ÿ π‘ β„Žπ‘Žπ‘Ÿπ‘’
πΆπ‘œπ‘ π‘‘ π‘œπ‘“ π‘ƒπ‘Ÿπ‘’π‘“π‘’π‘Ÿπ‘Ÿπ‘’π‘‘ π‘†π‘‘π‘œπ‘π‘˜ =
10%
99%
πΆπ‘œπ‘ π‘‘ π‘œπ‘“ π‘ƒπ‘Ÿπ‘’π‘“π‘’π‘Ÿπ‘Ÿπ‘’π‘‘ π‘†π‘‘π‘œπ‘π‘˜ = 9.9%
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