WACC Formula: Concept, Quick Calculations, Leases, Interview Questions, and More

In this tutorial, you’ll learn the concept behind WACC (the Weighted Average Cost of Capital), and you’ll learn the quick-and-easy method of estimating it along with more complex methods; you’ll also learn how to deal with Operating Leases in the calculation and how to respond to common interview questions about this topic.

For all the files and resources, please see:

https://www.mergersandinquisitions.com/wacc-formula/

Table of Contents:

0:00 Introduction

2:08 Part 1: The Big Idea Behind the Discount Rate

3:15 The WACC Formula

4:47 Part 2: Quick-and-Dirty WACC

10:40 Part 3: More Complex Calculations

18:25 Cost of Equity and WACC

22:57 Part 4: Leases in WACC: What to Do

28:11 Part 5: WACC Interview Questions

31:33 Recap and Summary