# Questions tagged [wacc]

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### Why is there inconsistency in WACC vs unlevered return?

To evaluate an enterprise we can discount free cash flow by either the unlevered required rate of return or the WACC. With Tax we have: $WACC=R_e \frac{E}{E+D}+R_f\frac{D}{E+D}(1-t)$ where $R_e$ is ...
295 views

### Valuing equity of a firm using WACC gives incorrect results

Suppose I have a free cash flow to the firm FCFF and the market cap is E. Obviously I don't believe the equity valuation and that's why I would even attempt valuating it. So one way to do it is find ...
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### Choosing WACC Tax Rate

I'm calculating the historical and forward quarterly WACC for a security. For the historical WACC, should I use the quarter's tax rate (which in some cases is very negative) or a TTM tax rate or ...
51 views

### When calculating theoretical futuresprices for oil, how do you calculate the storage costs?

I have read that the terminal cost can typically be 0,15-0,5 dollars per barrel, but are you also supposed to include the cost of capital (WACC) when calculating the total cost? Why? Why not?
297 views

### Trying to calculate WACC (Weighted Average Cost of Capital) for this (small) data set

I've attached the data set I'm working with to this post. I'm trying to calculate the WACC using this data. I found a formula here: http://www.investopedia.com/ask/answers/063014/what-formula-...
47 views

### Rewriting WACC Formula

$WACC = \frac{E}{V} * R_e + \frac{D}{V} *R_D(1-T_c)$ where $R_D$ should be the cost of the debt. $T_c$ is the tax rate. When googling the formula for cost of debt I find \$Cost of debt = R_D = ...