ACCA I Advanced Financial Management (AFM) I Weighted Average Cost of Capital (WACC)

ACCA I Advanced Financial Management (AFM) I Weighted Average Cost of Capital (WACC) - AFM Lecture 4

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2 жыл бұрын

Пікірлер: 18

@aiyenigbaoluwakemi3794 Жыл бұрын

Hi Sabi, thank you for all you do and your AFM course is a real life saver. I came accross your page after failing AFM the first time and I almost lost hope. Your completer videos and the 14days crash course was all I used for studies and I passed the second time. With your help I am now an ACCA affiliate. Thank you again !

@harshz.solanki Жыл бұрын

For those who have doubt regarding 2:1 ratio, it the MV of bonds (not the year as mention in video). 2 year bond MV= 27m 10 year bond MV= 54 (twice 2 year = 2x27) so the ratio is 1:2 Sabi thank you so much for lectures its very helpful ❤

@siyafsalim5127 2 ай бұрын

how should we calculate the modigliani and miller formula in excel ??

@mohammadhoque7963 2 жыл бұрын

Lecture is very clear & will helpful for us.

@vin7281 Жыл бұрын

Thank you for this, I am grateful

@blackm9063 8 ай бұрын

Great efforts. thank you Mam

@shanmuganathanthiripuranat1368 Жыл бұрын

Thank you

@anishkabra4309 4 ай бұрын

Thank You

@foodies_club25 Жыл бұрын

mam your lectures are very helpful. but there is only one advice that please solve test of understandings in a goof handwriting. i am not able to understand sometime your handwriting if i do a revision.

@ambujkansal Жыл бұрын

Thanks

@yashdym9739 Жыл бұрын

Hi Sabi. I have a question regarding the ratio 2:1 you used for the weighted average cost of debt calculation. I am not able to understand how you reached 2:1. The number of years is 2:10 which would be 1:5. If we use market value of each debt we would still not reach 2:1. Kindly advise.

@oluwadamilareabrahamadenir523 Жыл бұрын

Thank you so much for this lecture! Well understood, Please I have a reservation as to how you calculated the WACC in Test your understanding 8, @ 2:00:00 , why is the WACC adjusted for tax (multiplying it by 0.7) after the cost of debt have been adjusted for tax before computing the WACC. From my own understanding, when the cost of debt have been adjusted for tax, the WACC should not be adjusted since the cost of debt is already Kd(1-T). Please I would appreciate your timely response on this. Thank you🙏🏽

@prosecutor17 Жыл бұрын

I have same question. Did you manage to find an answer?

@oluwadamilareabrahamadenir523 Жыл бұрын

@@prosecutor17 yes, the cost of debt should be calculated post tax before calculating the WACC and not the WACC itself.

@grenadeby 2 ай бұрын

Her mistake,no need to multiply by 0.7 again.

@prosecutor17 Жыл бұрын

Please anyone, why during the calculation cost of debt, we deduct a tax from cost of debt, and later in wacc deduct the tax again second time on same cost of debt? Looks like double taxation?