The free excel template help the user
to calculates the weighted average cost of capital for the long-term funding used
by the firms, supplied by its creditors (or lenders) and the owners (or shareholders),

Inputs in the green cells only 

Equity financing (Column C, Row 8): The
long-term funding supplied by the shareholders includes both common stock and
preferred stock, common stock includes outstanding common stock and retained

 Debt financing (Column C, Row 9): The long-term
funding supplied by the creditors is long term debt only. Accounts payable,
accrued expenses, and other non-debt or current liabilities are excluded, short
term seasonal debt is also excluded, if the short-term debt is continuing as a
revolving, so that debt can be included as part of long-term debt

 Risk free rate (Column F, Row 8): is
return of an investment with zero risk, approximated by the return on very
short government treasury bond

Market risk premium (Column F, Row 9): is
difference between expected return on a market portfolio and risk-free rate

Levered beta (Column F, Row 10): is a
measure of market risk

Debt interest (Column I, Row 8): it is annual
interest on long term debt

Corporate tax (Column I, Row 9): tax on
net profit


 After you fill the green cells, the
data will dynamically flow into the following below

 Capital structure weights

Cost of equity using CAPM formula

Cost of debt after tax

Weighted average cost of capital

First dashboard showing the impact of
changing capital structure on WACC

Second dashboard showing the impact of
changing levered beta on WACC

 If you have inquiries please contact us

Reviews Add a review
No reviews yet

More From ECF Consultancy

Browse our top rated business templates. See All
Financial Reporting Checklist Excel Template
 Looking for a working checklist that you can use as a template when conducting a financial report? If you are,…
Balance Confirmation
 Download balance confirmation letter 
Executive Financial Summary Excel with Power Point Template
 Overview The template provides a short financial description of the business that allow the reader to understand the highlights of…
Payback Period
 What is payback period? The payback period helps to determine the length of time required to recover the initial cash…
Authority Matrix Excel Template
 Authorities and Responsibilities Matrices   Authorities and Responsibilities Matrices are considered important to organizations due to their role in identifying…
Business Review Meeting Excel Template
General overview The temple is a Business Review Meeting to be held monthly or quarterly. A business review meeting is…
See All