The Weighted Average Cost of Capital (WACC) - Online

This course teaches the fundamentals of valuing public and private companies through a case study approach. This module focusses on The Weighted Average Cost of Capital (WACC).

This course replicates the content from lesson 3 from Business Valuation - Online

This is an asynchronous eLearning course that can be accessed 24/7 from any internet enabled computer. Subscription period for this course is 90 days.


Individuals in credit, investment banking, corporate finance, and sales and trading.
Students will be able to:
  • Define leverage in terms of its influence on the WACC.
  • Determine the elements necessary to calculate the after-tax expected cost of debt.
  • Recognize the elements of the CAPM formula.
  • Describe the role of beta in determining the cost of equity.
  • Calculate the expected cost of equity and WACC.
Financial Statement Analysis and Corporate Finance, or equivalent level of knowledge.
The Weighted Average Cost of Capital (WACC)
  • Introducing the weighted average cost equation
  • Calculating the after-tax expected cost of debt
  • Using CAPM to calculate the expected cost of equity
  • The effect of leverage on weighted average cost
  • Case Study