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  • Копия WACC Template v2

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    Theodor K GReddy
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    The document discusses two methods for calculating the weighted average cost of capital (WACC): the dollar value method and the debt/equity ratio method. It provides examples of how to calculate WACC using both methods, including equity values, debt values, costs of equity and debt, tax rates, and debt-to-equity ratios. It also includes a table showing how WACC is affected by varying the debt-to-equity ratio from 0% to 20% and charts demonstrating the relationships between inputs. Instructions are provided for calculating WACC based on available financial information.

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    koppy

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    The document discusses two methods for calculating the weighted average cost of capital (WACC): the dollar value method and the debt/equity ratio method. It provides examples of how to calculate WACC using both methods, including equity values, debt values, costs of equity and debt, tax rates, and debt-to-equity ratios. It also includes a table showing how WACC is affected by varying the debt-to-equity ratio from 0% to 20% and charts demonstrating the relationships between inputs. Instructions are provided for calculating WACC based on available financial information.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    23 views8 pages

    Копия WACC Template v2

    Uploaded by

    Theodor K GReddy
    The document discusses two methods for calculating the weighted average cost of capital (WACC): the dollar value method and the debt/equity ratio method. It provides examples of how to calculate WACC using both methods, including equity values, debt values, costs of equity and debt, tax rates, and debt-to-equity ratios. It also includes a table showing how WACC is affected by varying the debt-to-equity ratio from 0% to 20% and charts demonstrating the relationships between inputs. Instructions are provided for calculating WACC based on available financial information.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    WACC

    Dollar Value Method Debt/Equity Ratio Method


    Equity ($) $1,000 Debt/Equity Ratio 20.00%
    Debt ($) $0 Cost of Equity 12.00%
    Cost of Equity 12.00% Cost of Debt 5.00%
    Cost of Debt 5.00% Tax Rate 30.00%
    Tax Rate 30.00%
    WACC 10.58%
    WACC 12.00%
    Instructions
    1. If you have the dollar values for equity and debt, use the 'Dollar Value Method'
    2. If you have the debt/equity ratio, use 'Debt/Equity Ratio Method'
    3. Input values in the grey cells
    4. Cost of Equity is calculated using CAPM. Click here for my tutorial + template
    5. The CAPM formula is located on the bottom left-hand side of this page
    6. The Cost of Debt is the interest rate charged on borrowings

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    Debt/Equity Ratio 0.00% 10.00% 15.00% 16.00% 17.00% 18.00% 19.00% 20.00%
    Cost of Equity 12.00% 14.00% 14.00% 12.00% 18.00% 20.00% 15.00% 13.00%
    Cost of Debt 5.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 9.00%
    Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
    WACC 12.00% 13.05% 12.72% 11.02% 16.20% 17.91% 13.72% 11.88%

    Chart Title
    Row 2 Row 3 р
    50.00%
    45.00%
    40.00%
    35.00%
    30.00%
    25.00%
    20.00%
    15.00%
    10.00%
    5.00%
    0.00%
    0.00% 10.00% 15.00% 16.00% 17.00% 1
    Chart Title
    ow 2 Row 3 ряд 5

    % 16.00% 17.00% 18.00% 19.00% 20.00%


    E - Valoare de piata a capitalului social $1,000 $1,120 $1,200 $950 $1,000 $1,000
    D - Valoarea de piata a datoriei firmei $200 $200 $200 $200 $200 $200
    Re - Cost capital propriu 12.00% 13.00% 14.00% 15.00% 16.00% 17.00%
    Rd - cost datorie 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
    Rata impozitului pe profit 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
    D/E Rata 20.00% 17.86% 16.67% 21.05% 20.00% 20.00%

    WACC 10.58% 11.56% 12.50% 13.00% 13.92% 14.75%

    Chart Title
    25.00%

    20.00%

    15.00% R
    R
    10.00% R
    R
    5.00%

    0.00%
    0 1 2 3 4 5 6 7 8 9
    D/E
    $1,000 $1,000
    $200 $200
    18.00% 19.00%
    5.00% 5.00%
    30.00% 30.00%
    20.00% 20.00%

    15.58% 16.42%

    Title

    Row 4
    Row 5
    Row 7
    Row 9

    6 7 8 9
    CAPM
    Instructions:
    Risk-free Rate 1. Input values in the grey cells
    Beta 2. 10 year Government bond yield can be used as the risk-fre
    Market Return 3. Beta of a stock can be found on Yahoo Finance
    4. Market return can be found online (marketindex.com.au)
    Expected Return 0.00%
    Please like and subscribe!
    Excelerate Learning
    ield can be used as the risk-free rate
    on Yahoo Finance
    online (marketindex.com.au)

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