B 1 A11V 2 Back to Index 3 Google WACC calculation 4 Debt 5 Average value $6,988,333 6 Cost of debt 3.66% 7 Tax rate 35.00% 8 Equity 9 # Shares outstanding (1,000) 674,490 10 Current price per share $526.70 11 Market value of equity $355,253,883 12 Cost of equity 7.98% 13 Beta 1.14 14 Rf 0.01% 15 Rm 7.00% 16 WACC ? 17 Google's Weighted Average Cost of Capital should be calculated as... O =(B12*(1+B7) *B5/(B5+B11))+(B6*B11/(B5+B11)) O =(B6*B5/B5+B11)+(B12*B11/B5+B11) O =(B12*B11/(B5+B11))+(B6*(1-B7)*B5/(B5+B11)) O =(B6*B5/(B5+B11))+(B12*B11/(B5+B11)) =(B6*(1+B7)*B5/B11)+(B12*B11/B11)