Weighted Average cost of Capital (WACC) under Book Value Approach ~ Financial Management

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  • Опубликовано: 14 окт 2024
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    In this lecture I have calculated specific cost of capital (i.e. cost of equity, cost of preference share and cost of debt) and also explained 'Weighted Average Cost of Capital'. In later part I have calculated WACC by two alternative methods. This question is solved using book value approach, alternatively can be solved using market value approach.
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Комментарии • 265

  • @nobinpradhan9235
    @nobinpradhan9235 4 года назад +160

    CA Naresh is an excellent tutor. I make it a point to see as many of his video tutorials as possible. There have been times when international and English speaking tutors couldn't explain some concepts clearly . I have then turned to CA Naresh's videos and those helped. Am happy to say that like me, he too is a CA . Thanks, Nareshji.

  • @kalyugon
    @kalyugon 5 лет назад +11

    Appko sir bohuth blessings. Milenge from indian students
    U r doing grt job
    I paid my tution fee I didn't understand anything but after watching u r video. It has. Benefited me alot
    Wat a teaching

  • @dhavalpatel9578
    @dhavalpatel9578 5 лет назад +30

    Sir your helping so many students for free... Aapki swarg ki ticket Pakki hai ❤.

    • @dhavalpatel9578
      @dhavalpatel9578 5 лет назад +1

      @Desi Prashu Hahahahahahhaahhahah 😂...nahi..

    • @anjanamohanan3207
      @anjanamohanan3207 4 года назад +14

      Yaar esa toh mat bolo please..
      Bhagwan ji Naresh sir ko 10000 saal ki umar de.

    • @shubhamnehate8421
      @shubhamnehate8421 4 года назад

      @@anjanamohanan3207 ye kuch jayada hogaya asa lagtaha

    • @anjanamohanan3207
      @anjanamohanan3207 4 года назад +4

      @@shubhamnehate8421 kisi ke liye swarg ki ticket milne ka pray krne se better hai achi dua de do... Thoda jyada ho jaye toh bhi chalega :)

    • @shubhamnehate8421
      @shubhamnehate8421 4 года назад +2

      @@anjanamohanan3207 I meant by 10000 years 😅

  • @paramjeetkaursidhu6763
    @paramjeetkaursidhu6763 8 месяцев назад +1

    Thank you sir , excellent teacher , completed graduation 23yrs before.Watch your vedios you explained in very simple way . Thanks.👌

  • @rohansaha3316
    @rohansaha3316 2 года назад +17

    I have my exam in 4 hours and thanks to you sir for explaning this topic in such a beautiful and precise manner

  • @himanshudhakecha1789
    @himanshudhakecha1789 6 месяцев назад

    its so simple and smooth he has just explained......wow i cannot think it can be that easy...kudos to Sir

  • @kushagrakumar150
    @kushagrakumar150 4 месяца назад +2

    Thank you sir boht easily explain kia aapne i was confused but now I’m all clear with my doubts.🙌🏻🙌🏻🙌🏻

  • @wanderer_Ammara
    @wanderer_Ammara 4 года назад +7

    Thank you sir.....u are doing a marvelous job of making things easier and available

  • @MehediHasan-bp7ox
    @MehediHasan-bp7ox 5 лет назад +14

    i really love the way u teach things and it looks very easy, thank you for making finance so easy :)

    • @sorenmaximilian1534
      @sorenmaximilian1534 3 года назад +1

      I guess it is quite randomly asking but do anybody know a good website to stream newly released tv shows online?

  • @sanskritypurohit6722
    @sanskritypurohit6722 3 года назад +21

    Thank you so much Sir, it was so precise and to the point explanation 👏🏻👏🏻💐💐 need more of such short concept-clearing videos 🙏

  • @TechLakhanEditor
    @TechLakhanEditor 8 месяцев назад +3

    Amazing ❤❤ easy Way to understand ❤❤ thank you so much sir..😊

  • @maksudurrahman8643
    @maksudurrahman8643 6 лет назад +3

    Sir I am Bangladeshi. Your lecture class is very help full for me.sir keep it up

  • @SaeedUrRehman-r3f
    @SaeedUrRehman-r3f 10 месяцев назад

    The way you have tought is amazing sir your teaching method is wonderful

  • @showkatahmadlone7154
    @showkatahmadlone7154 2 года назад +6

    Thank you very much sir
    You way of teaching is absolutely great
    May you Always rise and shine
    ❤❤❤

  • @kshitijchoudhary3688
    @kshitijchoudhary3688 15 дней назад +1

    Why can't everyone teach like you?

  • @bhavnasoni2582
    @bhavnasoni2582 4 года назад +2

    Thanku so much sir u help me lot ur way of teaching is realy good . U helping me to clear my exam thanku 🤲

  • @divyakannikanti5346
    @divyakannikanti5346 4 года назад +1

    Sir....you are the best educator....🙏🙏 you jus...make things soo easy...guru devoo bhava🙏

  • @kushalpandeywithyou
    @kushalpandeywithyou 5 лет назад +1

    thanks sir u all r doing nice job because lots of student unable to do classes because of financial problem .so all u are doing nice job by giving knowledge throught uploding video

  • @Varnikey
    @Varnikey 4 года назад +8

    in preference dividend u have written PD/P0 and in place of P0 u have written 100 when P0 is 160

    • @sriram181
      @sriram181 Год назад

      Yeaah exactly what I asked him as well

    • @chinmayeegore3399
      @chinmayeegore3399 Год назад

      @@sriram181 did you get ans for this?

    • @sriram181
      @sriram181 Год назад

      @@chinmayeegore3399 yes I did

    • @sarthakgarg3847
      @sarthakgarg3847 4 месяца назад

      @@sriram181 what is the correct answer? p=100 will be there or p=160??????
      PLEASE TELL

  • @yashu5309
    @yashu5309 Год назад +1

    Best faculty of costing ❤

  • @afshanbatlawala1692
    @afshanbatlawala1692 3 года назад +1

    Really no other vdo help me this much as yours sir...

  • @MyMeow5
    @MyMeow5 Год назад +2

    Thankyou very much sir for your knowledge sharing ❤

  • @prashsin7662
    @prashsin7662 2 года назад +7

    sir your intro music is so good it sounds like a climax sad scene of a movie
    i never miss it 😄
    moreover your way of explain every concept is superb.

  • @ronyantil7972
    @ronyantil7972 Год назад +1

    Thankyou Sir please share the name of book from which you takes questions to clear the concepts

  • @HyPeR_g0d65
    @HyPeR_g0d65 2 года назад +2

    Sir, you dropped this 👑

  • @agonlinetutor3700
    @agonlinetutor3700 4 года назад +3

    you have given us a lot of very informative explanation, very helpful information.

  • @fakhruddingulgula9780
    @fakhruddingulgula9780 5 лет назад

    Thank you so much sir apki ye sabhi video ke liye. Hame bahot help ho jati hai concept clear karke padh ne mai..🙏🏻😊aap yuhi video banate rahiye.

  • @payalshukla3426
    @payalshukla3426 3 года назад +4

    Sir can you please also record the class when you were teaching this concept from starting because we can't jump directly to the illistration

  • @MaheshSharma-it8bd
    @MaheshSharma-it8bd Год назад +1

    Thanku sir for this video is very useful for me

  • @MarufAlamUCM
    @MarufAlamUCM Год назад +1

    Very well explained sir

  • @streetbloggers722
    @streetbloggers722 Год назад

    Sir! I am from Bangladesh. thank you so much.

  • @pragatirajak6019
    @pragatirajak6019 2 года назад +2

    sir you are a great teacher☺☺ thank you so much sir🙏🙏

  • @shridhartari5278
    @shridhartari5278 3 года назад +1

    sir you are awesome.. i want to meet you.... i am ACCA student & watch your video for COC

  • @tanmoychatterjee8466
    @tanmoychatterjee8466 5 лет назад +4

    Sir I am verymuch impressed by your teaching process, but you said there is no subsitude of hard work which i disagree , smart work is the subsitude of hard work do work but smartly

  • @akashkashyap6411
    @akashkashyap6411 Год назад +1

    thankyou sir for such awesome content

  • @ShyamSharma-yr9th
    @ShyamSharma-yr9th Год назад +1

    Sir thankyou for this video

  • @gautampruthi3278
    @gautampruthi3278 11 месяцев назад +1

    Thank you so much sir

  • @harshitrajpal2743
    @harshitrajpal2743 4 года назад +6

    Sir very nicely explained, but if i am not wrong tax rate in question was 50% u took 30% only. 😅

    • @xrddirectorgifty7062
      @xrddirectorgifty7062 2 года назад +1

      He mentioned that the book which he was having shows 30% and the books which students were having showed 50%

  • @jhzkhattak
    @jhzkhattak 3 года назад +1

    To the point explanation thumbs up

  • @sainyamjain7277
    @sainyamjain7277 2 года назад +1

    very basic and very apt vid for beginnerrs ;)

  • @falaknaz436
    @falaknaz436 Год назад +2

    Very understable video thanks 👍😊 sir jii

  • @xrddirectorgifty7062
    @xrddirectorgifty7062 2 года назад +1

    Sir in the Kp value why did you took Po value 100 when it is 160??? Is it a mistake or I'm missing something

  • @krushnapednekar7419
    @krushnapednekar7419 4 года назад +5

    Thankyou sir ! This helps a lot. Your teaching style is so good!

  • @netajinaman9794
    @netajinaman9794 4 года назад +1

    Keep doing good work

  • @kunalprasad6574
    @kunalprasad6574 7 месяцев назад +1

    Excellent 🙏

  • @MuatterJehanzeb-zq4hc
    @MuatterJehanzeb-zq4hc 2 месяца назад

    sir if we issue both debentures and take a loan to raise capital , would the tax rate on both be same or different ?

  • @Mr.DX_Official
    @Mr.DX_Official Месяц назад +1

    Thnks bro... I wish phle dekh lete

  • @PAIN-es3mm
    @PAIN-es3mm 2 года назад +1

    best teacher ❤️❤️

  • @005asad1
    @005asad1 4 года назад +1

    Nice..Many Thanks

  • @wazirkashif
    @wazirkashif Год назад +1

    love you sir jii ..
    from pakistan

  • @quityjain2751
    @quityjain2751 2 года назад +1

    U r a gem sir

  • @Dalal_For_A_Reason
    @Dalal_For_A_Reason 6 лет назад +2

    If in case we were provided with the current price of preferential shares also, then would we have used that price in denominator while calculating the cost of capital on pref. stock?

  • @kidzooo
    @kidzooo 3 года назад +1

    Thank you so much sir I understood better than cls❣️

  • @ricktakar7238
    @ricktakar7238 Год назад +1

    Thank you so much sir ❤️🥺

  • @Fatima-rk7sy
    @Fatima-rk7sy 4 года назад +1

    Thank u soo much sir...😊😊

  • @chaitankesari9704
    @chaitankesari9704 3 года назад +1

    Thank you sir

  • @raghavis1028
    @raghavis1028 11 месяцев назад

    Sir, in the question, tax rate is given as 50%, but you've written 30 percent sir?
    what's the difference?

  • @multanimemer2209
    @multanimemer2209 Год назад +1

    Thank you sir love you hogya

  • @khajarahatnoor1054
    @khajarahatnoor1054 5 лет назад

    Sir Bhut help kra h apke video ne

  • @vivekgarg5168
    @vivekgarg5168 2 года назад +1

    Love you sir 🔥🔥🔥🔥🔥

  • @nileshpawar1639
    @nileshpawar1639 3 года назад

    Sir, as you are mentioning ki growth rate nahi di hai toh kuch add nahi hoga for calculating individual cost of equity (Ke). But what if I have dividend growth rate as 5% then what will be my Ke in this case.

  • @mehtabkanwal53
    @mehtabkanwal53 Год назад

    Sir kindly esii chapter k kch mazeed questions solve krwa dain

  • @hv2141
    @hv2141 3 года назад +1

    Great 👍

  • @Tendo_27
    @Tendo_27 Год назад

    Thank you so much for this video!!

  • @afrojaakter1215
    @afrojaakter1215 3 года назад +1

    Thank you sir❤🇧🇩

  • @aayushkumar7442
    @aayushkumar7442 5 лет назад +1

    Nice explanation sir keep uploading more videos

  • @prakharshukla9249
    @prakharshukla9249 Год назад

    Sir please make a video on WMCC..

  • @srinivasakarthikeyan1370
    @srinivasakarthikeyan1370 6 лет назад +1

    Ur lecturer very nice

  • @sohaibchadhar1098
    @sohaibchadhar1098 5 лет назад

    Thank you sir, bahot acha explain kra aap ne. God bless you.

  • @arpitabaheti9851
    @arpitabaheti9851 6 месяцев назад +1

    Besttt❤

  • @saireenirfan3732
    @saireenirfan3732 5 лет назад

    Sir if short term and long term debt are given should we calculate as it is or wat??

  • @amantiwari1916
    @amantiwari1916 Год назад

    Question me jo 10% diya hua hai debenture ka aur jo hamne 7% kd usme kya difference hai?

  • @vishalkanakiya9955
    @vishalkanakiya9955 6 лет назад

    Best lecture and good explanation

  • @atkhan1805
    @atkhan1805 5 лет назад +1

    Sir, simple average method Mae received back kaise karte hai plz simple average method k video Mae samjahaye na aap plz sir

  • @grammar_WithXizi
    @grammar_WithXizi Год назад +1

    my fav😍

  • @HarpreetKaur-rz1jo
    @HarpreetKaur-rz1jo 4 года назад +1

    Great🤗🤗

  • @commerslearninkannada4827
    @commerslearninkannada4827 4 года назад

    Sir ur lecture is very help full. Pzz kannada lauguege to the lecture riqwest sir pzz

  • @abhishekduggal6831
    @abhishekduggal6831 5 лет назад

    thanku sir....m so glad to learn from u

  • @bethechange4917
    @bethechange4917 Год назад

    Sir what's the name of the book from which you are taking the sums

  • @sunglasstelevision4004
    @sunglasstelevision4004 3 года назад +1

    Thanks

  • @supernova7870
    @supernova7870 5 лет назад

    Sir, which book you use for numerical portion in your videos , PlZz tell .

  • @ayushbangre773
    @ayushbangre773 5 лет назад

    Sir question and answwers clear likhiye ye question bhut imp hai mere liye

  • @NabeelAhmed-ln3fw
    @NabeelAhmed-ln3fw 6 лет назад +2

    Perfect Sir.........!!!!!!!!💖💖💖

  • @SureshKumar-ww6ib
    @SureshKumar-ww6ib 3 года назад +1

    Nice 👍

  • @ishankapoor12
    @ishankapoor12 5 лет назад

    you are a life saver

  • @acceleratorgg1
    @acceleratorgg1 Год назад

    The exact explanation, which was needed . Thanks Sir❤

    • @jagruti9542
      @jagruti9542 Год назад

      Cost of capital ka pura chapter hai inke channel pe ???

    • @acceleratorgg1
      @acceleratorgg1 Год назад

      Ha @@jagruti9542

  • @simranrani2514
    @simranrani2514 4 года назад +1

    Thnku sir 😊

  • @sehaladam8401
    @sehaladam8401 4 года назад

    Thank you sir, very helpful

  • @beomkomap
    @beomkomap 2 года назад +1

    Hi Sir. At 2:45, shouldnt we calculate ex-dividend share price = 160-20? and use Rs140 to derive the cost of equity Re?

  • @shreerangracharla1264
    @shreerangracharla1264 Год назад

    Sir if only given data and not given growth rate Tax rate so how to calculate WACC

  • @reshmaresh5539
    @reshmaresh5539 3 года назад

    You are required to determine the weighted average cost of capital on the basis of following
    information. Tax rate is 40%.
    Capital Component Details
    (a) Equity Share Capital 10,00,000 equity shares of ₹100, market value per share
    ₹250. Growth rate of dividend 6%
    (b) Retained Earnings ₹5 Crores
    (c) Debentures 1,00,000 debentures of ₹100 each, Interest rate 15%, current
    market value ₹110 each
    (d) Preference Capital 50,000 Shares of ₹100 each, dividend rate 11% ,current
    market price ₹90 each
    Sir how to solve these typ of questions

  • @crazzymaths8304
    @crazzymaths8304 4 года назад +4

    Sir cost of debenture nikalte samay upper side INTEREST rate 10% liya bt vo aage 0.10 kyu nhi hua.. .jaise tax rate aapne 30% liya aur vo 0.30 hua ussi debenture nikalte samay....

  • @m.avinashrao6091
    @m.avinashrao6091 5 лет назад

    Thanku for explaining so easily sir

  • @ahmedosman7738
    @ahmedosman7738 5 лет назад +1

    Please can you make your class international, coz I don't understand your language

  • @thashwingowda6908
    @thashwingowda6908 3 года назад +4

    1:22 how did intrest become 30 when it's given 50 ? Plz help me out

    • @houndop3677
      @houndop3677 2 года назад

      He is using new book question, he says that while putting tax 30%

    • @ShekJi-bm1sg
      @ShekJi-bm1sg 2 года назад

      @@houndop3677 can u tell me why he had taken P0 of debenture 100 and not 1000000 as it's give amount raised is 1000000

  • @rajamallick1403
    @rajamallick1403 4 года назад

    Sir... How to caluction of Cost of capital under market value as weight????

  • @subratosarkar1732
    @subratosarkar1732 5 лет назад

    Nice teaching Sir....👌🏼👌🏼🙏😊🙌🏼❣️

  • @Vivacity24
    @Vivacity24 2 года назад

    Sir please do one more problem which includes retained earnings also.

  • @sourav3747
    @sourav3747 6 лет назад +3

    Happy teachers day

  • @tigerkoshal1110
    @tigerkoshal1110 5 лет назад

    thank you so much sir ......🙂🙂🙂🙂🙂🙂🙂🙂🙂🙂🙂🙂🙂🙂🙂🙂