Weighted Average Cost of Capital (WACC)
Вставка
- Опубліковано 18 чер 2024
- This video explains the concept of WACC (the Weighted Average Cost of Capital). An example is provided to demonstrate how to calculate WACC.
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This was so confusing in my finance class, but it makes sense to me after watching this video! Thanks!!!
Ela Business and finance essentials?
principles of finance, actually!
Minimun Acceptable Rate of Return
&
Weighted Average Cost of Capital
Calculator:
DiscountingRate.com
i guess im asking the wrong place but does any of you know of a way to log back into an instagram account..?
I stupidly lost my password. I love any help you can offer me!
same right here, saved by ass!
My professor said to the class in supply chain management, " what do you all know about weighted averaged cost of capital?". To which I responded, " It's WACC!".
Ha! Great response. It's always best to be ahead of the class :)
John Downey 😂😂
🤣🤣🤣lol
I'll say this... I have exam tomorrow and i don't have a slightest clue about the subject as i'm a student of computer science. I skipped classes and now i'm doomed. THIS video made do all the WACC related questions. THANK YOU SO MUCH. Now i'm sure if i watch all your videos i'll nail the exams tomorrow :)
No problem! I hope you do great on your exam!!
how did ur exam went??
It went better than expected even though 90% was theory. My concepts were clear.
Imran Jafery .....what happened in your exam
woah, u make it so so much more clearer, its like you turn the whole equation into text, i have 0 idea what was my prof was talking. Thank you so much
Soooo much better than my text book! Thank You!! Love all the videos. I could almost like this stuff with you teaching it!
Thank you!! The video chat my professor did cut out during this part of the lesson. This may have saved my but. Easy to understand and to the point. Subbed!
u have no idea how mach this videos helped for my finals...much respect to u sir🙏
Thank you for your all beautifully explained videos.
Very good explanation. Thank you so much for the simple understanding of WACC.
Currently working my way through the CPA program in Canada and these video's are a great resource. Thanks for uploading
No problem!
I have a small playlist of your videos for everything i need for my financial mgmt class and you have been helping me pass! Thanks so much.
KatCJ
Minimun Acceptable Rate of Return
&
Weighted Average Cost of Capital
Calculator:
DiscountingRate.com
I'm a freshman when it comes to accounting. I'm starting to get the lingo and concepts. Thanks to people like you. Very much appreciated.
Welcome budy
simple and straight to the point
Your videos are helpful in my ACCA preparations thanks alot mate
Great explanation and example of WACC. Thank you
thanks a lot this explanation just made my evening... thanks a bunch
You have the best explanation and example of how to calculate WACC! Thank you!
Thanks for the video
Thank you very much. Very concise and well explained.
God bless you and your family for such a beautiful explanation! 10/10
Saved me from going crazy
now i fully understand whats going on in this messy formula !
No problem. I'm glad this video was able to help you!
Very explicit and straight to the point. I wish you come to our university to lecture Financial Management
Excellent video. Thank you!
you're a life saver , wonderful explanation
Such a helpful video, thanks 😊
Thanks for the video. I've skipped this so many times because it seemed too complicated but now I finally get it.
Excellent!
THIS REALLY HELPS. THANK YOU!!
Thank you so much!
This is quite helpful
I love these videos because we are given the formula sheet I just need to understand what the formula is and when to use it correctly
Whenever I have a question about managerial accounting study, I know I can find an answer here, thank you!
Thank you this helped so much!
Well this video has saved my ass for my exam, thank you!
Excellent! now i get the concept
Thanks :) You can also add an additional risk factor z to the formula if the degree of risk of the project is significantly fluctuating from the company's one, this could be because of entering a new unknown market or with a new activity....
Thank you it was very easy to understand
Thank you for this video!!! This really helps!!!
+SiriusSati Happy to help!
Very helpful! Thanks
Excellent lecture
great video as always
Excellent explanation
I wish my teacher explains it like this.. thank you 🙏
Thank you so much
Wow thank you so much for this!! Makes more sense to me now :)
othgyal12
Minimun Acceptable Rate of Return
&
Weighted Average Cost of Capital
Calculator:
DiscountingRate.com
I was afraid I would fail my exam, but I got 96%...all because of watching your videos. Thank you!!
Congratulations!
Alhamdulillah...
Very clear explanation! Thanks!
+Julien Campeau No problem. I hope you have a great winter break!
The professor didn't explain it as clear as you did, you have the ability to clarify even the complicated concepts.. you absolutely saved my semester.. thanks a lot !
Greetings from Morocco 👋
Glad it helped!
Really great explanation of WACC. Thanks a lot!
Richard Gordon
Minimun Acceptable Rate of Return
&
Weighted Average Cost of Capital
Calculator:
DiscountingRate.com
great video
i just want to say Brilliant ,,, Well done Sir !!!!
ASIF KHAN
Minimun Acceptable Rate of Return
&
Weighted Average Cost of Capital
Calculator:
DiscountingRate.com
It's not even a challenge when you're given all the numbers like this.
God ikr 😂
@@AMamaBearsMission lol
@@AMamaBearsMission wow... you need help honey
@@AMamaBearsMission Jesus Christ....
@@AMamaBearsMission Damn Karen this is internet
you make great videos and explain it to a t.
🙌🙌 much helpful..thank you.
bro.... i legit love you
Thanks~ for the video. Very much appreciated!
Glad it was helpful!
greatly appreciated
thanks a lot!
I do not know where I would be in my accounting journey if it was not for you. Thank you so much
This is not accounting, is Finance
@@ignaciopazgarcia5370 I am getting an accounting degree which involved finance classes but thanks anyways
Excellenet video!
Wow I wish I would be given all the numbers like this in an exam!
You are amazing! Thanks man.
You're welcome!
Beautifully explained
Thank you so much 🙂
amazing
Thanks !
You scared me with the .1 and .0072! haha but thank you sir that was a wonderful example!
what's the title of the video that talks about tax shields? I can't seem to find it, thanks!
Thanks 🙏🏾 🙏🏾🙏🏾
Thank you, this is really helpful for my exams :-)
Jazel
Minimun Acceptable Rate of Return
&
Weighted Average Cost of Capital
Calculator:
DiscountingRate.com
As a 5th year accountancy student, this channel helps me a lot in my accounting exams
😀
@@EdspiraI just want to share to you that I passed the 5th year Integrated Classes in my university. I'll be graduating this coming May 2024. I'll be taking the CPA licensure exam here in Philippines on October 2024. Thank you so much for the knowledge imparted to us. It is truly amazing how much this channel helped me in my exams. Thank you. 😊
Fantastic video! Learning so much, thank you. But where is your CAPM video?
+Somethingforgotten I'm not sure if I made one yet. If I didn't, I will make sure to post one this summer when I resume video production. Thanks for the request!
does anyone know what program the instructor is using to teach us this material? what's this called... this youtube projector thing?
also, great video... helped me pass a professional certification
this is a simple version, would you please do a longer version like if you have more then 2 types of finance and how would you calculate each type of finance I.e. how would you calculate cost of debt, ordinary share and preference shares THAT WOULD REALLY HELP!!!THANK YOU
Good suggestion. I will absolutely try to do that this summer!
Why are youtube videos better at teaching me my course than my 9.5k lectures
Did he ever put a video explaining why we use after tax cost of debt? If yes, where can I find it? Thank you
I will not stoop so low, as to call this video wack, I just wont do that! lol Hey in my last chapter of Intermediate II and Managerial II. I have to laugh, or I'm going to cry! lol Prepping for finals without these videos, would be awful. MUCH LOVE !!!
Why isn't preferred stock included in your calculation of WACC? Thanks for the videos!
sounds good
Great video but can you explain how to arrive at the cost of debt and the cost of equity? I think you mentioned that there's another video on how to calculate the cost of equity but I wasn't able to find it. Can you post the links for those videos if they exist?
What they said... my wife for her finance class needs to calculate the right side of the equation... when they give you the WACC already. Where is that video example?
beautiful
Hi I need some assistance. I have a paper due but I don't know where to start. Can I email the question to you and you provide me with some guidance?
You should probably also mention that re= rf + beta (rm - rf) for when you're not given the cost of equity. How do you calculate the NPV of a possible investment project using WACC?
No, actually you are wrong. rE is not equal to rA - which you are referring to. rE= (E+D)/E * rA - D/E * rD ! whereas rD is the capital cost of debt which is more or less rF (risk free) - depending on how someone interpret it (you can add country risk to rF)
Wow ❤
Your videos are just brilliant!
You are amazing! Are you on Patreon or something like that?
+91Muzzle Thank you! I'm not on Patreon-- that is something I need to look into this upcoming year as I expand with more videos. Thanks for the heads-up!
great ;)
Can I know what software is used to create this video?
where can i find the further explanation on tax shields? tq
To find the cost of debt through wacc, will I have to calculate corporate's tax?
Hello to WGU people ...you found help right here!
Thanks for sharing!
How did you get the answer .0072? Because while I was conputing I can only get an answer of 0.072. And then when I add 0.072 to the first one which is 0.1 the result was 0.172. not 0.1072. Can you please do explain it further? I would really do appreciate it if you will. Thank you. :)
Me too..
All this easy how to get numbers and plug into the formula like the cost of equity?
For the tax portion, why are we taking 1-0.04 when rate is 40%? Why not just multiply by 0.04?
Superb!
Awesome. Thanks for watching!
I don't get the tax shield, please help. Thanks!
Cost of equity is CAPM = RiskFree + Beta*(RiskMarket - RiskFree)
Cost of debt is the rate the banks gives you for the loans.
Filippo Teodoro
Minimun Acceptable Rate of Return
&
Weighted Average Cost of Capital
Calculator:
DiscountingRate.com
Confused about the term "equity" , when we have { Capital =$10m , Dividend per common stocks =$6m , Debt =%4m } . Rd=8%, Re=12, Tax=40% . ? WACC=??
So this formula does not cater for preference shares ??
whats the meaning of proportion of equity=50%?
How do you find out the cost of debt and equity.
I know it has been 2 years, but it might help someone reading the comments later on like I did. The cost of debt is the interest rate that you have to pay for a loan. If you have multiple loans, you can calculate all of the seperate interest payments (per loan) -> Adding them all up and then divide them by the total debt.
The cost of equity is the price that the shareholders expect to be paid. Sometimes it's given, but you can also calculate it with the Capital Asset Pricing Model. Edspira also made a video on that subject here: ua-cam.com/video/fDz_DgDJD5g/v-deo.html
👍
How does this relate to WACC = WCS × CCS + WPS × CPS + WD × CD? Im super confused. For my online class I am basically trying to teach my self. My professor does not give examples.
By "WD" I assume your prof is referring to the proportion of debt financing, while "CD" means the cost of debt. For example, if the company was financed 80% by common stock at a cost of 10% and 20% by debt a cost of 12% (assuming no preferred stock), the WACC would be (80%*10%) + (20%*12%).
NICE! LIFE SAVOR FR FR
we got given a gearing ratio and had to work out the wacc for each gearing % or something now im even more confused lol