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your answers to two decimal places. Download spreadsheet Calculating the WACC - 6 1 0 9 3 d . xIsx Use the DCF method to
your answers to two decimal places.
Download spreadsheet Calculating the WACCdxIsx Use the DCF method to find the cost of common equity.
Aftertax cost of debt:
Cost of preferred stock:
Cost of retained earnings:
Cost of new common stock:
b Now calculate the cost of common equity from retained earnings, using the CAPM method.
the two methods in calculating WACC.
WACC :
:
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