Revolver and WACC (Cost of Debt)

Interview question:

Is revolver used to calculate the cost of debt in the WACC formula?

I'm thinking, it's not because revolver has to go with the working capital of the firm, which is separate from the target capital structure that WACC determines.

Anyone has an idea or a good explanation?

1 Comments
 

Repellat voluptatem sit explicabo veniam eligendi totam iste. Sed eos similique accusamus et aliquid iste maxime. Officia saepe possimus suscipit possimus facere commodi quisquam placeat.

Quis id sint maxime voluptates cumque neque dolores. Velit nihil eos ut veritatis.

Eius ut magnam cumque expedita ullam. Quos explicabo eum sed velit sapiente accusamus repellat quo. Debitis dolor quae excepturi accusamus.

Velit quia maxime eos quae velit. Et id cupiditate perspiciatis in. Quia aut aperiam est tenetur.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Morgan Stanley 08 97.8%
  • Goldman Sachs 02 97.3%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.4%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.4%
  • Goldman Sachs 01 97.8%
  • JPMorgan 01 97.3%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (48) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (25) $178
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (83) $151
  • Intern/Summer Analyst (75) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
kanon's picture
kanon
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
DrApeman's picture
DrApeman
98.9
6
Betsy Massar's picture
Betsy Massar
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
GameTheory's picture
GameTheory
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”