03 - Capital Structure & Cost of Capital
- Author
- Mario Tricarico Rosano
- Published
- Mon 24 Feb 2020
- Episode Link
- https://podcasters.spotify.com/pod/show/mario-tricarico-rosano/episodes/03---Capital-Structure--Cost-of-Capital-eb1e4m
This episode focuses on the role of debt and equity in a company's capital structure, and how the cost of equity and the cost of debt are derived and come together in the WACC equation.
WACC = (Equity/Equity+Debt)*(Cost of Equity) + (Debt/Equity+Debt) * (Cost of Debt)*(1-Tax Rate)
