WACC Weighted Average Cost of Capital | Explained with Example

In this lesson, you will understand what WACC (Weighted Average Cost of Capital) is, why it is important and how to calculate it using the cost of capital from various types of capital and financing sources. We show and explain the WACC formula and how it is calculated using the table.
We also explain what WACC is used for and how it works with the capital structure and the NPV (Net Present Capital). We give helpful tips on WACC and how it compares to IRR (Internal Rate of Return).
Capital Structure explained | How it affects EPS (Earnings Per Share & Profitability): • Capital Structure Expl...
IRR (Internal Rate of Return) Explained with Example: • IRR (Internal Rate of ...
Net Present Value (NPV) Calculation Example Using Excel: • Net Present Value (NPV...
Net Present Value (NPV) Calculation Example Using Table: • Net Present Value (NPV...
Check out other straight-forward examples on our channel.
We also offer one-on-one tutorials at reasonable rates.
Connect with us:
Email: [e-mail]
Our Website: Counttuts.com
Our Facebook Page: / counttuts
Support our Efforts: / counttuts

[@nangamsoceba6647]

Thank you so much this is crystal clear!

[@marlontristen2095]

you probably dont give a damn but does anyone know a tool to log back into an instagram account..?
I was stupid forgot my password. I appreciate any help you can offer me!

[@declankaiden5177]

@Marlon Tristen Instablaster :)

[@marlontristen2095]

@Declan Kaiden i really appreciate your reply. I found the site thru google and Im in the hacking process atm.
Looks like it's gonna take a while so I will get back to you later with my results.

[@marlontristen2095]

@Declan Kaiden It did the trick and I finally got access to my account again. Im so happy:D
Thank you so much, you really help me out !

[@declankaiden5177]

@Marlon Tristen No problem :D

[@mpheletau3278]

This channel is quickly becoming my number 1 go to channel for simplifying finance concepts. Thanks a lot

[@FinancialtalksIQ]

Look, you deserve an internationally recognized award for doing these videos. Thank you soʻooooooooooooooo much brother

[@njabulomaphumulo94]

To think I have been battling with this chapter for the past 5 days and you have just simplified it in 17 minutes. Thank you.

[@sarahserwar5909]

I spent hours trying to reason this WACC and get it to my brain and thanks to this video I finally get it .... Appreciate it

[@yonatinochimodzi6179]

Thank you very much. It's been a week of struggling with understanding WACC. This video has changed it all for me.😀

[@africanchild5719]

Beautiful voice, beautiful presentation... If I fail I won't blame you. Thank you

[@thatokometsi8008]

I cant believe that I only found out about this channel this week. Everything just makes sense.

[@yanyanofficial8854]

Thank you for making it easier to understand. Simplicity is everything.

[@MinipayWambiri]

It's upon you...class 2 hours hapa 17 minutes 😅😂❤

[@okwomiokwomi4334]

Hapa amesaidia

[@DianaAchieng-x1j]

Seeing this and I have my exams today

[@godfrednuel8104]

Wow you just made me smile
Such a simple but meaningful presentation. God richly bless you ❤

[@zasendulomkhize3049]

Thanks so much for these videos. This channel is my go-to and have refered my colleagues as well🤜. Have greater chances of doing well in my MACF☺

[@mzwandilestishi3493]

It had to be you who made it all clear....Thanks a lot

[@tashingamungofa9562]

Life saver right here!
You just made my life easier

[@MohdAhmad-q2z]

nice explained sir, tysm.....love from india

[@Pelokazii]

This channel gives me hope. Amazing work!!!

[@maureenlouw-jantze6368]

The video was awesome and very much helpful. Thank you!!

[@mzilikazi6216]

You are the best tutor👌

[@siduduzilemthembu3989]

Thank you so much, this is very clear and well presented.

[@janwray]

Thank you so much for the great lesson.

[@keojansen5340]

Thank you so much, you have helped me with my assignment, It is clear.

[@jeanettemphatlo5662]

I found this channel a month ago and I can say it has helped a lot.. Thank you so much 😘😘

[@frederickfidel4533]

NICE WORK DONE HERE ...BLESS YOU

[@elizabethmunetsi4663]

Thank you so much for your tutorial!! It was so helpful!❤😊

[@OliviahNkhata]

This was very helpful ❤❤🎉🎉

[@senditali16]

Very very helpful🤘🏻thanks man.

[@evelynastarkazhinga]

Wow.. thank you very much. I never imagined this topic could be this simple.

[@BuckeyeFitnessFirm]

One of the best explanations I've watch! And I've watched a lot... do you tutor?

[@shoaibmohammad8334]

Thanks. This is very clear.

[@icebear8356]

Thank you for this!! Very helpful

[@taniaadonis8631]

i have definitely learned something new!

[@oyeleyeshadrach3169]

Thanks..This really helped

[@primrosechivasa7453]

Awesome teaching

[@sevillakassandracamille6654]

Well-explained, Sir. Thank you so much!

[@amukelaniaffection3040]

Can you please make a video of . Learning Unit 5: Capital structure and Financial Leverage
2. Learning Unit 6: Degrees of Financial leverage, risk and break-even analysis
3. Learning Unit 7: Ddividend Policy

[@danisabaloyi608]

wow, thank you for your amazing work

[@pieedmund94]

Well done! simple precise explanations.

[@annielunabuccat-cabuyao8183]

Very helpful. Thankyou very much.

[@karabomalatji214]

This channel is so helpful,I love how you simply everything.

[@zeeigh_24]

by just watching this video I was able to solve problems

[@dimakatsomolebatsi2901]

Thank you soooo much you explained it in a very easy way, Much love!!!

[@kamogelotheo6110]

Thank u 🔥🔥🔥❤

[@tamsenish]

Great video!!

[@solsolive]

This was so helpful thank you so much!.

[@mariamjallow2355]

Thank you so much sir
This really helped me understand

[@fedelicskaaria7289]

Good job.Very clear and well presented

[@ThatGirlSince97]

I wish you would've added debentures to this. Awesome video tho!

[@agneschinembeza1940]

Well explained, it now makes a lot of sense, I'm enlightened

[@zinhledlamini591]

Number one🎉

[@venkadeshg9447]

Exactly presented what I want to know. Also made me to subscribe your channel

[@dollarboi_international]

THE BEST !

[@manurapiyumal9327]

Thanks ! Helped me a lot.

[@linahmbanjwa]

❤very helpful thanks

[@tamsenish]

Thank you!!

[@jacinta3203]

So helpful.

[@Counttuts]

Glad it helped.

[@bevonbwire6903]

Thank you 🤗

[@oliverluwewa9413]

very clear , now where another example of calculating wacc where market cost of debt is not given

[@norminarif4321]

Thank you sir 💐 such a great explaination 👍🏻 its help me a lot ✨

[@sivenqonji9855]

Thank you so much!

[@tatendamangwandi6734]

thumbs up ..this is clear

[@gamingtechwithjeff6]

I really appreciate this☺️

[@lordsick8527]

Lifesaver❤🔥

[@mosesmanasseh7106]

Bravo❤

[@blackpulsepictures24]

thankas it really helped!

[@kutlwanosegole1182]

Hi can you please make another example when the book and market values are included. Thank you.

[@ibekwe-ucheuba2480]

You the best

[@mahlakophasha3299]

How does wacc link to debt to equity ratio?

[@ausakamanga9779]

thank you

[@mihlalintloko7719]

WHICH OF THE LINKS S THE ONE THAT TEACHES HOW TO CALCULATE COST OF CAPITAL
?

[@fanashaa3130]

Thank u

[@simonayabrahams3353]

I am currently working on an assignment and I need to calculate the average cost of capital. Can you please assist me as im very confused?

[@flaneurli.6077]

hi can you help me pls. if they given previous value and expected future value for preferred stock, how to calculate market value of preferred stock?

[@Counttuts]

Good day, this one should help: ruclips.net/video/3A_0Sougztk/видео.html

[@kibethillary2622]

Great

[@jackthebeanstalkdelohio5146]

To find the cost of debt through wacc, will I have to calculate corporate's tax?

[@mkbutinini3271]

good

[@sujathakalidoss5578]

Which topic easily for distance students... I know only leverage sum ... Capital structure, weighted avg & divident policy

[@kafuipraise6311]

Thank you so much for this video ❤️

[@najamkhanzada804]

In cost of capital measurement why should the cost of capital be calculated as a weighted average of the various types of funds that a firm generally used, not as the cost of the specific type of capital used during a given year?

[@sumiyaaktershanta8129]

Where is the description
I can't find it

[@kachymwanza6953]

Kindly show how the formula is applied

[@sinai1687]

Hello Sir. How would I calculate the weighted cost if there is a tax rate of 28% ?

[@ZaneleMahlangu-v2d]

You just replace the 35% with the 28% (or whichever tax rate is given to you)

[@mahlakophasha3299]

Do you guy offer online classes

[@Counttuts]

Good day, yes we do. Email us at [e-mail]

[@martinferreira7725]

Hi - Please can you assist with explanation and example on the following question.
Trendy Limited uses a combination of shares and debt in their capital structure.
There are 2 million R1 ordinary shares in issue and the current market price is R2.50 per share. The latest dividend paid was 40 cents and a 9% average growth for the past six years was maintained.
The company has 1 000 000 R2, 8% preference shares with a market price of R1.80 per share.
Trendy Limited has a public traded debt with a face value of R2 million. The coupon rate of the debenture is 7% and the current yield to maturity of 10%. The debenture has 6 years to maturity
They also have a bank overdraft of R600 000 due in 3 years’ time and interest is charged at 15% per annum.
Additional information:
• • Trendy Limited has a beta of 2.1, a risk-free rate of 7% and a return on the market of 16%.
• • Company tax rate is 30%.
Required:
4.1 Calculate the weighted average cost of capital, using the Gordon Growth Model to calculate the cost of equity. (22)
4.2 Calculate the cost of equity, using the Capital Asset Pricing Model. (3)

[@lebogang.matlala8672]

This was really helpful. thank you

[@zeeigh_24]

thank you