Andrew Stolz

AUGUST 5, 2020

The optimal capital structure of a company is the proportion of debt and equity financing that maximizes the company’s value while minimizing the cost of capital (WACC). Formula: [Cost of Equity * % of Equity] + [Cost of Debt * % of Debt *(1 – Tax Rate)] + [Cost of Preferred Stock * % of Preferred Stock].

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Equity Capital Structure Equity Financing 52

Valutico

APRIL 17, 2023

A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). Riskier industries, may have a higher Cost of Capital. What is the WACC?

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 17, 2023

A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). Riskier industries, may have a higher Cost of Capital. What is the WACC?

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52

Valutico

APRIL 12, 2023

A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). Riskier industries, may have a higher Cost of Capital. What is the WACC?

Weighted Average Cost of Capital 52

Weighted Average Cost of Capital Discounted Cash Flow Beta Risk-free Rate 52