Jefferies Interview Question

How do you calculate the WACC?

Interview Answers

Anonymous

Nov 7, 2011

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

1

Anonymous

Jan 18, 2020

This is wrong ^ ADD: Cost of Debt x (1-T) x % Debt + Cost of Equity (CAPM) x % Equity