cost of debt 


price 

Market Price of Bond.should be given or at finra.org 
years left 

years left to maturity; no need to *2 
coupon 

If coupon rate is given use coupon rate*1000; Use annual coupon; no need to /2 
tax rate (%) 

Tax rate charged; should be a percentage. For example, tax rate is 34%, then put down 34, not 34% here 
flotation percentage (%) 

Flotation percentage = flotation fee / bond pric; should be a percentage. For example, flotation is 90 and bond price is 900, so put down 10, not 10% here 
after tax cost of debt (%) 

the direct result is the annual yield; no need to *2 

cost of equity 


dividend 

If current dividend is given,multiply by (1+growth rate) 
price 

stock price 
flotation percentage (%) 

Flotation percentage = flotation fee / stock price 
growth rate (%) 

Dividend growth rate,g 
cost of equity (%) 



cost of preferred stock 


dividend 

preferred stock dividend. If no prefeered stock, put 0 here 
price 

preferred stock price. If no prefeered stock, put any number except 0 here 
flotation percentage (%) 

Flotation percentage = flotation fee / stock price; If no prefeered stock, put 0 or any other number here 
cost of prefered stock (%) 




total debt 

For this project how much debt is needed? 
equity 

For this project how much equity is needed? 
preferred stock 

For this project how much preferred stock is needed?If no prefeered stock, put 0 here 
total capital 

For this project how much capital is needed? 

weight of debt 

Percentaage of Capital that is debt 
weight of equity 

Percentaage of Capital that is equity 
weight of preferred stock 

Percentaage of Capital that is preferred stock 

WACC (%) 

Weighted Average Cost of Capital 