Financial Calculators

Nine professional tools wired to the concepts in the guides. Change an input, watch the decision change.

Market value of equity (E)$MMarket value of debt (D)$MCost of equity (CAPM)%Pre-tax cost of debt%Corporate tax rate%

WACC

8.40%

After-tax cost of debt

4.50%

Equity weight

60.0%

Debt weight

40.0%

Capital structure

Contribution to WACC (percentage points)

WACC = (60.0% × 11.00%) + (40.0% × 6.00% × 0.75) = 8.40%. Average-risk projects must clear this hurdle to create value.