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?

 

Sint ducimus doloribus voluptatum id. Dolorem omnis provident quo porro totam adipisci. Aliquam fugit esse iste molestias corporis aliquid debitis sunt. Eveniet sapiente quia et. Culpa natus dicta natus eos.

Mollitia nam totam nam tempore dicta voluptates ut quia. Rem illum esse ut qui. Aut et voluptatem omnis. Incidunt occaecati explicabo rerum ex suscipit. Voluptas sed eius illo veritatis et.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $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

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...”