Capital Structure Flashcards

1
Q

WACC

A

Average cost of debt and equity financing associated with a firm’s existing assets and operations.

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2
Q

WACC Formula

A

Cost of Equity x Cost if Debt
(weighted). (weighted)

Cost of CS. Cost of PS. Debt: EF int rate
1. CAPM.
2. DCF
3. BYRP

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