WACC Calculation for a Firm Undergoing a Change in Capital Structure: Unlevering and Relevering Beta

In this video, I explain the difference between a firm's asset beta and equity beta, sometimes also known as a firm's "unlevered" beta and "levered" beta, respectively. I then explain the intuition and the mechanics behind unlevering and relevering the beta to calculate a firm's cost of equity and weighted average cost of capital (WACC) when it is undergoing a change in capital structure.
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My name is Atif Ikram. I am a Professor of Finance at Arizona State University (wpcarey.asu.ed....
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Thank you so much