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    ejh1908's Avatar
    ejh1908 Posts: 1, Reputation: 1
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    #1

    Aug 15, 2009, 07:25 AM
    Calculating WACC with 3 sources of capital
    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's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    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.
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