WACC: what to include in debt?
Hey there. Was wondering what BS items to take into consideration when calculating the debt portion of the capital structure which ultimately is used to calculate WACC. My understanding is that we would focus on non-current debt only. I got the following non-current liability items:
- Provisions for pensions and similar obligations
- Other provisions
- Loan liabilities to banks
- Liabilities from finance leases
- Other liabilities
- Income tax liabilities
Which ones would I include in my debt calculation? I would go with (3) only...
Some help hereon is highly appreciated.
its COST of debt, not debt. Big difference
You should include 1, 3 and 4
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