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??
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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??
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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