Table of Contents
ðī 3 Minutes! Weighted Average Cost of Capital or WACC Explained (Quickest Overview)
āļāļāļāļāļēāļāļāļēāļĢāļāļđāļāļāļāļ§āļēāļĄāļāļĩāđāđāļĨāđāļ§ āļāļļāļāļĒāļąāļāļŠāļēāļĄāļēāļĢāļāļāļđāļāđāļāļĄāļđāļĨāļāļĩāđāđāļāđāļāļāļĢāļ°āđāļĒāļāļāđāļāļ·āđāļāđ āļāļĩāļāļĄāļēāļāļĄāļēāļĒāļāļĩāđāđāļĢāļēāđāļŦāđāđāļ§āđāļāļĩāđāļāļĩāđ: āļāļđāļāļ§āļēāļĄāļĢāļđāđāđāļāļīāđāļĄāđāļāļīāļĄāļāļĩāđāļāļĩāđ
omg I’m SHOCKED so easy clicked here https://mbabull.com/ for Weighted Average Cost of Capital or WACC…
If You Like My Free Videos, Support Me at https://www.patreon.com/MBAbull
Let’s say you need money to do business… this is called capital. However, where do you get this capital? You get it from either the owners’ money (equity) or you get it from borrowing from the bank or other sources (debt). http://www.youtube.com/watch?v=Wz6Dwbp2XiI If your capital is borrowed from the bank, does this have a cost?
Yes! It’s the interest on your loan. So if the interest rate is 5%, then your cost of capital is also 5%. But if your capital comes from investors instead of a bank loan, does this have a cost?
Yes! It’s the expected return of your investors. If investors are expecting a 10% average return by investing with you, then your cost of capital is 10%. It’s called a \”weighted\” average because it gives more \”weight\” or importance to either your borrowed capital or your investors’ money, whichever is greater. Now here comes our problem…
What if part of your capital comes from bank borrowing at 5%, and another part of your capital comes from investors expecting 10%?
Is your cost of capital 5% like the bank loan or 10% like the investors’ expected return?
Of course, it’s something in between… but not exactly in between because you might have more of one than the other.
Check out my free video and also download my free WACC cheatsheet at MBAbullshit.com . See ya there! (Note, we are different from Investopedia)
Economic Value Added (EVA) Example
This video shows an example of how to calculate Economic Value Added.
Economic Value Added (EVA) can be calculated as follows:
EVA = aftertax operating profit [weightedaverage cost of capital (total assets current liabilities)]
â
Edspira is the creation of Michael McLaughlin, an awardwinning professor who went from teenage homelessness to a PhD. Edspiraâs mission is to make a highquality business education accessible to all people.
â
SUBSCRIBE FOR A FREE 53PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
âĒ A 23PAGE GUIDE TO MANAGERIAL ACCOUNTING
âĒ A 44PAGE GUIDE TO U.S. TAXATION
âĒ A 75PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
âĒ MANY MORE FREE PDF GUIDES
http://eepurl.com/dIaa5z
â
HIRE MICHAEL MCLAUGHLIN, PHD, CPA
https://michaelmclaughlin.com/hireme
â
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSETLIABILITY MANAGEMENT
https://edspira.thinkific.com
â
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
Website: https://www.edspira.com/podcast2/
â
GET TAX TIPS ON TIKTOK
https://www.tiktok.com/@prof_mclaughlin
â
ACCESS INDEX OF VIDEOS
https://www.edspira.com/index
â
CONNECT WITH EDSPIRA
Facebook: https://www.facebook.com/Edspira
Instagram: https://www.instagram.com/edspiradotcom
LinkedIn: https://www.linkedin.com/company/edspira
â
CONNECT WITH MICHAEL
Twitter: https://www.twitter.com/Prof_McLaughlin
LinkedIn: https://www.linkedin.com/in/profmichaelmclaughlin
â
ABOUT EDSPIRA AND ITS CREATOR
https://www.edspira.com/about/
Economic Value Added EVA
This video defines the concept of Economic Value Added (EVA) and works through an example.
â
Edspira is the creation of Michael McLaughlin, an awardwinning professor who went from teenage homelessness to a PhD. Edspiraâs mission is to make a highquality business education accessible to all people.
â
SUBSCRIBE FOR A FREE 53PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
âĒ A 23PAGE GUIDE TO MANAGERIAL ACCOUNTING
âĒ A 44PAGE GUIDE TO U.S. TAXATION
âĒ A 75PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
âĒ MANY MORE FREE PDF GUIDES
http://eepurl.com/dIaa5z
â
HIRE MICHAEL MCLAUGHLIN, PHD, CPA
https://michaelmclaughlin.com/hireme
â
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSETLIABILITY MANAGEMENT
https://edspira.thinkific.com
â
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
Website: https://www.edspira.com/podcast2/
â
GET TAX TIPS ON TIKTOK
https://www.tiktok.com/@prof_mclaughlin
â
ACCESS INDEX OF VIDEOS
https://www.edspira.com/index
â
CONNECT WITH EDSPIRA
Facebook: https://www.facebook.com/Edspira
Instagram: https://www.instagram.com/edspiradotcom
LinkedIn: https://www.linkedin.com/company/edspira
â
CONNECT WITH MICHAEL
Twitter: https://www.twitter.com/Prof_McLaughlin
LinkedIn: https://www.linkedin.com/in/profmichaelmclaughlin
â
ABOUT EDSPIRA AND ITS CREATOR
https://www.edspira.com/about/
Economic Value Added EVA – ACCA APM Revision Lecture
Economic Value Added EVA ACCA APM Revision Lecture
Complete list of free ACCA APM lectures is available on https://opentuition.com/acca/apm/
Please go to OpenTuition to download the APM notes used in this lecture, view all remaining Advanced Performance Management (APM) lectures, and post questions on the Ask the ACCA APM Tutor Forums We do NOT provide support on the youtube comments section.
Economic Value Added
This video explains how to compute Economic Value Added from financial statements using excel.
āļāļāļāļāļēāļāļāļēāļĢāļāļđāļŦāļąāļ§āļāđāļāļāļĩāđāđāļĨāđāļ§ āļāļļāļāļĒāļąāļāļŠāļēāļĄāļēāļĢāļāđāļāđāļēāļāļķāļāļāļāļ§āļīāļāļēāļĢāļāđāļāļĩāđ āļāļ·āđāļāđ āļāļĩāļāļĄāļēāļāļĄāļēāļĒāđāļāđāļāļĩāđāļāļĩāđ: āļāļđāļ§āļīāļāļĩāļāļ·āđāļāđInvestement
717526 415716Wholesale Cheap Handbags Will you be ok merely repost this on my site? Ive to allow credit exactly where it can be due. Have got an excellent day! 844244
497180 1813Great blog here! Also your site a lot up fast! 331710
997674 67240I like this blog its a master peace ! Glad I detected this on google . 799068
964321 612573It is essential to have having access towards the understanding posted here 660655
997367 518570Youd outstanding guidelines there. I did a search about the field and identified that quite likely the majority will agree along with your internet page. 94437
419517 748340Enjoyed reading through this, really good stuff, thankyou . 146813
928445 997182Incredible! This weblog looks just like my old one! Its on a completely different topic but it has pretty much the same layout and style. Excellent choice of colors! 427892
50094 141576I appreciate your work , thanks for all of the informative weblog posts. 122104
324831 765036Wonderful post, I think internet site owners really should acquire a good deal from this internet site its very user pleasant. 260050
882856 651041Hello my family member! I wish to say that this post is incredible, great written and come with approximately all vital infos. I would like to see extra posts like this . 502676