Weighted average cost of capital (WACC)

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Uploaded by on Jul 23, 2010

WACC is a marginal cost: we can't go to full leverage because the "cost of financial distress" increases the costs of financing.

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Uploader Comments (bionicturtledotcom)

  • 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?

  • @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

  • 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.

  • @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

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

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

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  • Thanks a lot for uploading! great!

  • 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

  • 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.

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

  • Very informative! Thx!

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

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