How to adjust the WACC when the debt ratios of the project and the company differ

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IE code
FIN020278-U-ENG-VID
Language
English
Format
Video
Est. dedication time
6 minutes
Academic Area
Type of publication
Technical Note and tutorial

Description

In this video, Professor Goergen explains how to adjust the weighted average cost of capital (WACC) when the debt ratios for the company and the firm differ, offering a practical example from a company to walk students through the adjustment.

How to adjust the WACC when the debt ratios of the project and the company differ