FRM: Weighted average cost of capital (WACC)

[@skaidanseur6307]

This is a great video. You make it so much easier to understand. No more scratching my head or feel like giving up!! Thank you.

[@bionicturtle]

@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

[@joemae1]

you saved my life! this was 100 times better than how my professor explained it. thank you so much!

[@MatteNoob]

You should be proud of your whole channel, super helpful and tons of value!

[@jn2579]

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

[@bionicturtle]

I am honored by your comment, thank you!

[@bionicturtle]

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

[@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.

[@buckyafitch]

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

[@ridiculouslyfierce]

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

[@applexy]

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

[@jesserietveld87]

my school finance lecturer took two weeks for this... and of course I didn't get it, This was a good video . Thank you

[@delilahmuro5655]

Is there an excel template that calculates WACC, great video

[@bionicturtle]

@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

[@bionicturtle]

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

[@Salzakusiii]

Amen to that. This actually just saved my grade, and future career!!!

[@callej123]

Your videos are great! Keep up the awsome work!

[@RichKingsford]

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

[@bionicturtle]

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

[@D.R._Iris]

The formula other formulas I've seen for this topic look more like this in my Finance class is: WACC = Wd Rd (1-t) + Wp Rp + We De Where are you getting the "Kp" and "Ke"? instead of "Rp" and "De"...? Is there a reason they're both K instead?

[@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.

[@eiveeneiva3088]

Great Video, short and too the point.

[@fatemeazizi1863]

What are the limitations of the WACC method?

[@cokooforanimaljam]

If the debt was a bond - should you calculate the YTM for the interest rate ?

[@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

[@bionicturtle]

@buraddoh Thanks!

[@houdapurple]

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

[@thepassionatesoul1802]

I use the WACC rate to calculate the NPV and IRR right?

[@BronwynHartley1]

Wouldn't the lowest form of debt be preferred shares here? Debt would be 1.44, preferred shares 1 and common shares 7.2? Just curious why you're saying debt is the lowest cost of capital.

[@amankediaroxx2766]

What we mean here is the cost of capital. Cost of capital does not include weights. If you have knowledge of basic statistics and a bit of common sense then you will be come to know what exactly you are asking.

[@mariajauslin1107]

Tax is also a cost. Wha not 1+T

[@user1001001000]

Good job, Its really helpful

[@neeleshgupta]

wow...absolutely brilliant

[@krishanthan1000]

Really good. Thank you.

[@SubrahmanyaJayaprakash]

Thank you!

[@favourmacaulay3320]

Thank You.

[@favourmacaulay3320]

thank you

[@GhulamNabi-ty2zl]

Nyc vedio

[@bionicturtle]

Thank you for watching!

[@CherokeeMist]

Postive V+bes

[@ridiculouslyfierce]

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