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-   -   Calculating WACC with 3 sources of capital (https://www.askmehelpdesk.com/showthread.php?t=387053)

  • Aug 15, 2009, 07:25 AM
    ejh1908
    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??
  • Aug 15, 2009, 02:04 PM
    ArcSine
    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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