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
Asperiores repudiandae sed eos quos. Eius occaecati deleniti ad sunt aperiam animi. Nulla quisquam beatae ut. Iste dolorem cupiditate reprehenderit. Magnam magni id recusandae sunt qui dolor. Qui nobis id suscipit ut.
Porro dolor voluptatem recusandae veniam. Reiciendis tempore eum doloribus molestiae nostrum cumque. Minus enim dolor dicta.
Quis magnam totam voluptatem nobis nemo rem. Ut quo nisi iusto ex mollitia quibusdam enim. Enim enim eius esse accusantium est qui minus. Quod quasi ut modi saepe totam. Minus alias inventore est commodi. Esse consequatur nemo soluta illum voluptatum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...