Capital Structure
Free CPA BAR (Business Analysis & Reporting) lesson in Business Analysis. 20 min read, ~2,992 words.
WACC = weighted average of after-tax cost of debt, cost of preferred, and cost of equity, using market value weights. After-tax cost of debt = pre-tax yield on existing debt × (1 − T); only debt gets the tax shield. Cost of equity = three accepted methods on the BAR...
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What this lesson covers
- Content
- Example 1
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- I.B2
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