Weighted Average Cost of Capital (WACC) - Formula, Examples

WACC Calculator & Formula (Weighted Average Cost of Capital)

ACCA F9 The weighted average cost of capital (WACC)

The current weighted average cost of capital (WACC) for Van der Welde is 10 %. The company announced a debt offering that raises the WACC to 13 %. The most likely conclusion is that for Van der Welde: A the company's prospects are improving. B equity financing is cheaper than debt financing. C the company's debt/equity has moved beyond the optimal range. | Numerade

CIMA F2 Weighted Average Cost of Capital WACC - Introduction | Free ACCA & CIMA online courses from OpenTuition

SOLVED: 1. The difference between the weighted-average cost of capital (WACC) and the pre-tax (unlevered) WACC is A.the weighted-average cost of capital multiplies the cost of debt by (1-tax rate) and the pre-tax WACC does not. B.the weighted-average cost of capital is based on the after-tax cost of equity and the pre-tax WACC is based on the after-tax cost of debt. C.the weighted-average cost of capital multiplies the component costs of equity and debt by their weight in the c