Jefferies Interview Question: How do you calculate the WACC... | Glassdoor

Interview Question

Investment Banking Analyst Interview San Francisco, CA

How do you calculate the WACC?

Answer

Interview Answer

1 Answer

1

(WEIGHT OF EQUITY * COST OF EQUITY) + (1 - TAX RATE)*(COST OF DEBT) * WEIGHT OF DEBT. WEIGHTS CAN BE DERIVED FROM DEBT-TO-EQUITY RATIO

KJ on Nov 7, 2011

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