Slide 1Weighted average cost of capital Timothy A. Thompson Executive Masters Program Slide 2 What is the WACC? WACC = (D/D+E) r d (1-T c ) + (E/D+E) r eL D/D+E and E/D+E…

Weighted average cost of capital Timothy A. Thompson Executive Masters Program What is the WACC? WACC = (D/D+E) rd (1-Tc) + (E/D+E) reL D/D+E and E/D+E are capital structure…

Slide 1 Weighted Average Cost of Capital (WACC) Slide 2 What is WACC? WACC is the cost of capital for a business that raises capital from more than one source Public companies…

Slide 1 Chapter 13 Cost of Capital Slide 2 Capital Structure A firm’s Capital Structure its mix of the three components of long term funding –Debt –Preferred stock…

Slide 1 1 Energy Company Valuations “It’s all in there!” Georgia State Economic Forecasting Conference May 25, 2005 Richard T. O’Brien Executive Vice President and…

Cost of Capital and Efficient Capital Markets Why Cost of Capital Is Important Cost of capital provides us with an indication of how the market views the risk of our assets…

CHAPTER 15 CHAPTER 15 CHAPTER 15 Cost of Capital I. DEFINITIONS COST OF CAPITAL a 1. The opportunity cost associated with the firm’s capital investment in a project is…