Page 79 - BTEABVD
P. 79

Creating a Validated Cashflow

                      WACC = Weighted Average Cost of Capital
                       75% Debt @ 6%pa
                       25% Equity @ 10%pa

                       WACC = (75% x 6%) + (25% x 10%)
                       WACC = 4.5% + 2.5%
                       WACC = 7%
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