Weighted average cost of capital (WACC)

[callej123]

Your videos are great! Keep up the awsome work!

[jn2579]

This was so much easier to understand than my instructor! Please keep up the good work!!

[bionicturtledotcom]

@jn2579 Thanks we will try (I am proud of this WACC video, to tell the truth....). Thanks!

[buraddoh]

Thanks a lot for uploading! great!

[bionicturtledotcom]

@buraddoh Thanks!

[178snguyen]

University professors are a joke. Sorry, most of them. That is why formal education can make you a living, but self education can make you a fortune

[coolmanman101]

Your materials are so awesome! Just a quick question, will it be possible to get the excel sheet that you use for the above video? Is it available on your website for download?

thanks.

[rollingcube]

very interesting to see the various streams of capital.Oh, and what is Beta?

In real terms would returning 9.6% on investment pay the various capital streams their full allotment? Does that make sense?

[bionicturtledotcom]

@rollingcube the numbers are not meant to be realistically calibrated, rather just stylized; i.e., in today's environment, after-tax WACC of 9.6% is high

[22kir22]

why can't my online professors be this clear and precise? I don't even know what they get paid for since they make us read textbooks to understand the material, and the tests are graded automatically and I am pretty sure that he didn't read my papers, at least not completely because even I wouldn't give myself as good of a grade as I got on some of them.

[bionicturtledotcom]

@22kir22 Thank you, that's honest. If you pay for the service, you are a customer, yes? I don't understand why some students don't demand more for their dollar. If a meal is not cooked, you would return it to the kitchen; but for much larger fees, we are too tolerant (in some cases). If it's not a fair deal, speak up, is my view, fwiw

[houdapurple]

thank you sooooo much i get it now ...from algeria with love merciiiiiii

[DreadnoughtFIN]

Very informative! Thx!

[grivetnitro]

Thanks a lot, finance exam tomorrow and you have made things much clearer then any text book could have!

[dajieda0]

Thanks!!! Really helpful for my M&A assignment !!

[richkingsford]

Awesome stuff! I'd love to see everything taught in an MBA program explained on youtube!

[alanmartinezh]

hello i would like to know if you could make a video explaning buying a new machine compared to another which one od them has different price at the behinnig at the end, lasts for different years, ocnsidering depreciation how could i know which one is better considering the cash flow they will give me

[buckyafitch]

The last part about marginal cost really helped....thanks for the explanation.

[krishanthan1000]

Really good. Thank you.

[ridiculouslyfierce]

Massive thank yous. Really good and incredibly clear. Just what I need pre exam tomorrow

[bionicturtledotcom]

@ridiculouslyfierce thank you, I really appreciate that. Good luck on your exam! David

[ridiculouslyfierce]

Massive thank yous. Really good and incredibly clear. Just what I need pre exam tomorrow

[arturiSilva]

Very good!

[arturiSilva]

very good!

[capitalismforme]

Got a quick question for you if you'd be kind enough to answer it. The ERP is equal to the excess amount above the risk free rate that the overall market produces. If your ERP is 5% and your risk free rate is 4%, then the market had to produce 9% in order to provide an excess of 5%. My question is, how did you arrive at the assumption that the market has produced a 9% return?

[boxster007007]

Great stuff mate, Thanks alot for doing this, truly is a breath of fresh air after reading that text book all day! have an exam this weekend so your vid is a massive help. Many thanks from Australia! :D

[zahablog]

Hey David you're videos are really helpful for my exam. Just one question, why is the rate of interest for different % leverage curved, falling with higher leverage before rising?

My guess is that the cost setting up the loan relative to the loan falls with a higher % debt, before default risk increasing the rate at high leverage?

[applexy]

This is amazing. Thank you so much for providing this content, always a blast to learn from you! I

[bionicturtledotcom]

@applexy thank you for such a kind compliment! it is a blast for me to share....

[neeleshgupta]

wow...absolutely brilliant