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ejh1908
Aug 15, 2009, 07:25 AM
I have the book value, market value, and before-tax cost of bonds, common stock, and preferred stock; and of course I have the tax rate included- how in the world do I begin to calculate the WACC with these given values??

ArcSine
Aug 15, 2009, 02:04 PM
The tipoff is in the 'WA' part of WACC... it's a weighted average of the COCs of the individual components.

To figure the weighted average, use market vals, not book.