Premium Essay


In: Business and Management

Submitted By faressh
Words 339
Pages 2
WACC or Weighted Average Cost of Capital: Summary “Cheat Sheet” by
 Money (capital) needed to run a company comes from either borrowing (debt) or the owners’ money (equity). The COST of capital is either the interest payment on the debt, or the required profit that the owners want in return for their investment (in MBA bullshit language: “expected return”). The expected return or COST OF EQUITY is determined by another financial model, the CAPM or the CAPITAL ASSET PRICING MODEL. Go to or click here to learn more about it (get my eBook or watch our FREE video). When you COMBINE BOTH the interest rate of debt AND the ‘expected return’ of the investors/owners, we get the total cost of capital. If the cost of debt (e.g. interest) and cost of equity (expected return) are different, then we have to get an AVERAGE of the two to get our COST OF CAPITAL Cost of capital is expressed as a percentage; because it’s compared to the total capital (as a percentage of the total capital). Just like bank loan interest is expressed as a percentage of your total loan. What if your company has more debt vs. equity, OR vice versa? Then our formula must give more importance or ‘WEIGHT’ to whichever is bigger; and must give LESS weight to whichever is SMALLER. Thus, we have the WACC or Weighted Average Cost of Capital concept. To learn this better, you may want to download my eBook and watch my FREE video at or click here. This is the basic WACC or Weighted Average Cost of Capital Formula:

WACC = (Debt Proportion)(Cost of Debt %)(1 - tax rate %) + (Equity Proportion)(Cost of Equity %)  To understand this formula step-by-step in action, watch my free video at or click here. See infographic on next page:

Feel free to share this PDF file with your friends.
All other rights...

Similar Documents

Premium Essay

Rise in Taxi Fares in Singapore and Factors Contributing

...Article: Comfort DelGro revises taxi fares in Singapore From: Summary Taxis are an important form of public transport as well as public service in Singapore and have a total strength of approximately 25,176 in this country. Most people in the country would opt to take public transport as compared to having a personal vehicle for transportation as the cost for maintenance for a personal vehicle is higher as compared to taking public transport. Recently, Comfort DelGro, the most dominant taxi company (with a total of 15439 taxis) in Singapore has opted to revise their taxi fares to meet the increased demand of taxis in Singapore without the consultation of consumers or taxi drivers. Taxi models by Comfort DelGro include Toyota Crown, Hyundai Sonata, Toyota Camry and a Limousine model. Before 12 December 2011, the flag down price was SGD $2.80, SGD $3.00, SGD $3.20 and SGD $3.20 for the different models of taxis respectively. The meter fare was SGD $0.20 for every 395 meters (m) from the first 10 kilometers (km), SGD $0.20 for every 330m after 10km and SGD $0.20 for every 45 seconds of waiting time. Currently, the flag down price for the different taxi models are SGD $3.00, SGD $3.20, SGD $3.40 and SGD $3.40 for the respective models of taxis. The meter fare currently is SGD $0.22 for every 400 m for the first 10 km, SGD $0.22 for every 300 m after the first 10 km, and SGD $0.22 for every 45......

Words: 1212 - Pages: 5

Premium Essay


...dozens of cities around the world and is currently pursuing the Nashville market. Their business model enables them to have much more flexibility and options compared to taxis and general public transportation. As they continue to grow, they’ll need to consider the costs associated with legal and regulatory fees of each new market they enter and factor accordingly. By structuring their fare on a per-distance basis over 11MPH/per-minute under 11MPH, they’re able to charge a premium and remain competitive with modern features and comfort. The application, choice of car, GPS driver tracking and ride sharing enable Uber to offer a modern, innovative take on metro transportation. Taxi companies are obviously opposed to the competition and are demanding that Uber and similar companies like Lyft and SideCar undergo the same regulations and annual inspections that they have to. Those costs vary and will typically need to be considered on a per market basis. Uber’s ride sharing offering has been well received by many large cities and commuters as it enables users to quickly find open carpools and split fares between other passengers. Being primarily web based allows for lower overhead and an overall smaller footprint. They have also launched several other programs in addition to their signature, luxury “Black” car service for mid-range and hybrid vehicles. With their low overhead and “green” initiatives, they’re able remain highly profitable and take advantage of tax benefits.......

Words: 295 - Pages: 2

Premium Essay


...What is Ryanair’s strategy and why has it been successful so far? To survive in the highly competitive business, the firm should be position itself uniquely. In 1991, European still didn’t have a low-cost airline. Since the airfare is pretty high, only the upper-class that can afford the pricy ticket can accessible to this service. Ryanair’s strategy is to capture the middle-class customer, which are price sensitive, by lower the airfare to get more customer. Ryanair is also the first one who capture this market segment by dropped its fares to the level that people never seen before. It also gained popularity and easily capture market share since there is no direct competitor in this segment at that time. To be profitable with the lowest fare, Ryanair operates with highest cost efficiency. * Routes: Ryanair use the bargaining power to negotiate with the secondary airports to use the airports free of charge. The traffic at the airport are also not congested which will help to increase the flight turnover rate. * Reservation: The traditional reservation system was done by the agent and airline have to pay approximately 9% commission to the agent. Ryanair reduce the commission to 7.5%. Ryanair also have their own direct sell channel via call center and website to which is the distribution channel that it can capture 100% profit. * Ground and in-flight operations: Ryanair acquired air craft at very low price. All aircraft in Ryanair configured with the maximum......

Words: 557 - Pages: 3

Free Essay

Class Paper

...the flat airport rate was not available. The base fare, cost per minute, and cost per mile vary city-by-city, and Uber service. Uber fare rates are different for UberX, XL, UberPlus, Black Car, and Select. To give you a feel for the range of Uber fare costs, here’s a look at the fare costs in Los Angeles California. LA features almost every Uber service and the prices aren’t much higher or much lower than other American Uber markets. Los Angeles Uber costs | Base Fare | Cost per minute | Cost per mile | Safe Rides Fee | UberX | $0.80 | $0.21 | $1.10 | $1 | UberXL | $3 | $0.35 | $1.85 | $1 | UberPlus | $5 | $0.40 | $2.35 | $1 | UberBlack | $8 | $0.45 | $3.55 | n/a | UberSUV | $15 | $0.55 | $4.25 | n/a |  Dynamic Pricing: Dynamic pricing refers to where the company set its pricing based on the available drivers and passengers requests. This scenario usually takes place during bad whether , traffic conditions, peak time , and holidays (supply and demand). Are pricing practices consistent with competitors? Taxi cab VS Uber Rates According to Business Insider, Uber drivers offer better prices than taxis in many cities, but Uber drivers don’t always charge the same rate in each location. In times of high demand Uber initiates surge pricing , as we discussed in dynamic pricing. Uber charges the normal fare times a surge multiplier. Taxis charge riders......

Words: 743 - Pages: 3

Free Essay

Abacus Aat Pricing & Tktg Quick Ref 073109.Pdf

...ABACUS PRICING QUICK REFERENCE FARE QUOTE DISPLAY FQMNLSIN–PR Quick Reference Page FQMNLLAX12FEB–PR Currency Code FQMNLHKG22MAY–PR–CX Fare Basis Code FQMNLBKK31MAYALL–PR Booking Class FQMNLSIN19JUL–SQ¥R26JUL Passenger Type Code FQS1 Multiple Passengers Tax Display FQ∗ Tax Display Basic Entry FT1 Tax Details from List RB2 Specific Tax Code RB2MNLLAX–PR/LAXMIA–AA Passenger Facility Charge Basic Entry Optional Qualifiers Travel Date Multiple Carriers Display All Types of Fares Return Travel Date Fare Display from Segment Continuation Entries Redisplay Fare Tax Breakdown Display Display RBD Conditions Display RBD by Carrier FQHELP FQBKKMNL–PR/USD FQMNLBKK–TG¥QYEE6M FQMNLBWN–BR¥BY FQMNLTPE–PR¥PINF FQMNLTPE–PR¥PSEA/LBR TXN∗BKK TXN∗1 TXN∗∗XA PXC∗SFO Basic Entry Fare Rule by Line Number Redisplay Rule Information Routing Map FARE RULE DISPLAY RDMNLLAX11SEPLEE6M–PR RD2 Quick Reference Page RDHELP RD∗ Rule Menu of Categories RD2∗M RD2∗RTG Specific Categories RD2∗5/15/22 NON-ITINERARY PRICING WQMNLHKGLAX–ACX/VCX Quick Reference Page Basic Entry Optional Qualifiers Currency Code Passenger Type Code Operating Carrier Date & Booking Class Surface Segment Connection City Continuation Entries Fare Details from List Fare Rule Display Rule Display of First Fare Rule Display from Fare List Fare Basis Code WQHELP WQMNLHKG–ACX/VCX/MUSD WQMNLKULMNL–AMH/VMH/PCNN/PINF WQMNL/ASQSIN/APRMNL–VSQ WQMNL29MAR/CYBKK13APR/CSMNL–ATG/VTG WQMNL14APR/APRHKG/–BKK19APR/ATGMNL–VPR......

Words: 1491 - Pages: 6

Free Essay

Jeepn Eys Farehike

...Department of Transportation and Communication LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD Provincial Fare Rates History DIESEL DATE P / Liter % Inc. (Dec.) Minimum Fare 1st 5km BUSES (Reg. Fares) % Inc. (Dec.) RATE/KM. after MIN. % Inc. (Dec.) PUB (aircon MINIMUM FARE per km 1.10 Minimum Fare 1st 4km JEEPNEYS (Reg. Fares) % Inc. (Dec.) RATE/KM. after MIN. % Inc. (Dec.) 1987 September 5.25 ‐ 1.00 ‐ 0.255 ‐ 0.90 ‐ 0.240 ‐ 1989 December 4.96 1.00 0.280 1.00 0.275 1990 September December 6.24 7.75 25.81 24.20 1.25 1.50 25.00 20.00 0.325 0.37 16.07 13.85 1.25 1.50 25.00 20.00 0.315 0.36 14.55 14.29 1996 November 7.57 ‐2.32 2.00 33.33 0.45 21.62 2.00 33.33 0.41 13.89 1997 November 7.83 3.43 2.50 25.00 0.57 26.67 2.50 25.00 0.41 0.00 1999 October 9.54 21.84 3.00 20.00 0.70 22.81 3.00 20.00 0.47 14.63 2000 October 14.23 49.16 4.00 33.33 0.90 28.57 4.00 33.33 0.57 21.28 2004 June 18.07 26.99 6.00 50.00 1.10 22.22 5.50 37.50 1.00 75.44 2005 MARCH Regular        1.35 De Luxe       1.45 Super de Luxe 1.55 Luxury         2.00 27.00 8.50 JUNE 41.67 1.30 18.18 MAY Reg. 1,3,4,5 & CAR Reg. 2,9,10,11,12 & CARAGA Reg. 6 7.50 6.50 6.50 1st 5km 36.36 18.18 18.18 1.00 1.00 0.70 ‐ ‐ Reg. 7 Reg. 8 6.00 1st 4km 6.00 1st 5km 9.09 9.09 0.72 0.80 ‐ ‐ 2008 MAY (Fare increas Provisional) 42.05 55.74 9.00 5.88 1.40 Regular        1.60 7.69 De Luxe       1.70 Super de Luxe 1.80......

Words: 759 - Pages: 4

Free Essay


...Reaching us It is Nesuss Airlines commitment to ensure easy accessibility to every passenger travelling on Nexuss Airlines. Our telephone numbers which are accessible 24 hours are: 800 37000 800 21000 800 56000 • Nexuss Airlines are committed to making our tickets easily available to our Guests. Nexuss Airlines tickets can be purchased by: 1. Calling up our Call Centers 2. The Nexuss Airlines website ( 3. Through the Travel Agents • Nexuss Airlines follows a dynamic fare policy and the fare levels fluctuate depending on the number of bookings made / anticipated on a particular flight. It is Nexuss Airlines’s commitment to the Guests that at any given point of time the lowest available fare at that time would be made available on all booking mediums. In case a lower fare level is available after a Passenger has made his booking, a rebooking will be allowed on the lower fare level after paying a seat release charge. Our fares are quoted in UAE Dirhams and in US Dollars. International guests can book and make payments through their credit card. • Amendments and Cancellations Nexuss Airlines understand that passengers could be in a situation where they have to amend or cancel their tickets. At Nexuss Airlines our passengers can amend or cancel their tickets up to one hour before the scheduled departure of the flight. • Keeping you informed At Nexuss Airlines we are committed to keep passengers informed in case of......

Words: 725 - Pages: 3

Free Essay

Next Card

...[pic] 37-08 Main Street ( Suite C8 ( Flushing ( New York 11354 E-Mail: Direct Dial: (718)554-5466 Toll Free: (800) 940-1102 (718)554-5468 Facsimile: (206) 338-2846 Credit Card Authorization Form Your completion of this authorization form helps us to protect you, our valued customers, from credit card fraud. All information filled on this form will be keep strictly confidential. The Form Filling Directions: 1) Fill out and electronic signature on the form, or print the blank form and complete the entire form legibly with black pen, the card holder must sign on the signature line indicated. We reserved the right to verify the provided information with your Credit Card issuing Bank. 2) Include a photocopy of the both front and back of the signed credit card. 3) Fax the completed form and the photocopies of the credit card to (206)338-2846 or scan and email to to complete your order. ATTEN: B.Q. |Ticket Booking Details: | |1 | |(First Name) ...

Words: 1897 - Pages: 8

Free Essay

Court Observation

...Court Observation Report Prosecutor: Sgt. Glover, ID: GV117, Detachment: 488, Vancouver Police Department Vs. Dependant: Mr. Ma W. Yun File #: AH66110504 Vancouver Provincial Court Room 201 800 Hornby Street Vancouver, BC January 14th 2013 Start time 13:30 a.m. – Adjured 13:57 a.m. Summary of Facts Mr. Ma W. Yun was prosecuted for Trans-link ticket fraud. On November 8th 2012, Ma was caught boarding the sky strain at Broadway Station without purchasing a ticket. A police officer charged on Ma for failing to show a valid ticket. Plaintiff’s Argument The prosecution, Sgt. Glover, presented the crown case that Ma using public transit without producing the ticket when requested. Therefore, he suggested Ma to be fined. Defendant’s Argument Ma pleaded guilty with an explanation to the court that he was a student at Simon Fraser University. He had U-pass in his wallet, which he forgot at home. When he was caught, he told the officer that he forgot his wallet with the U-pass. He promised to present it and his identification to the officer within one hour. The officer took Ma’s information and let him go. Ma went home and came back with his wallet, identification, and U-pass showed to the officer. However, he was told that he still had to appear in court. In his argument, Ma mentioned to the Judge two facts which can suggest that he was not dishonest. That was at the time he was charged, he did not have any identification at all thus he did not lie the officer about......

Words: 1032 - Pages: 5

Free Essay

Wwwc Flight

...Confirm flight times and terminal information within 24 hours prior to departure. Flight Details Malaysia Airlines MH140 Fare Class: ZBT3MAU Airline Reference: L0GDW Travellers Mr Xiong Yang Departs Sydney 9:40PM Wednesday 15 May 2013 Baggage 40kg of checked bags included Arrives Kuala Lumpur 4:30AM Thursday 16 May 2013 Frequent Flyer Program International check-in 2 hours prior to scheduled departure time. You need a valid passport for international travel. Domestic check-in 1 hours prior to scheduled departure time. You need a valid Australian photo identification to check-in. Check in online at airlines' websites within 24 hours of departure. Important Information Confirm flight times and terminal information within 24 hours prior to departure. Qantas flights QF1-QF399 depart from the International Terminal. Jetstar flights depart from Domestic and International Terminals. Use this itinerary to check in. Australian and New Zealand flights use electronic tickets, you will not be issued with a paper ticket. Domestic check-in 1 hour prior to the scheduled departure time. You need valid Australian photo identification to check-in. Check in online at airlines' websites within 24 hours of departure. International check-in 2 hours prior to scheduled departure time. You need a valid passport for international travel. Baggage Please refer to detailed Fare Rules provided for baggage limits. To change your booking... Call 1300 733 867 and quote your booking......

Words: 2241 - Pages: 9

Free Essay

My Days

...TOURS & TRAVELS reference number : | FMN0UX6CLXO | Airline PNR number : | PZ43RP | | | Your E-Ticket as on 06 Jul 2013 08:16 AM To fly easy, please present the E-Ticket with a valid photo identification at the airport and check-in counter. The check-in counters are open 2 hours prior to departure and close strictly 45 minutes prior to departure. Itinerary | From/To | Flight | Date | Dep. | Arr. | Stops | | | | | | | Chennai(MAA, Terminal ) - Guwahati(GAU, Terminal ) | IndiGo 6E-292 | 27 Sep 2013 | 01:30 PM | 05:25 PM | Kolkata | | | | | | | Passenger | Charge Description | Amount | MT / ZACHARIAS MR     [Adult] | Air Fare | 449.00 INR |   | Taxes, Surcharge and Fees | 3,484.00 INR |   | UDF: | 10.00 INR |   | Service Tax: | 1.24 INR |   | Total | 3,944.24 INR | Fare Conditions |  All Guests, including children and infants, must present valid identification at check-in.  Check-in begins 2 hours prior to the flight for seat assignment and closes 45 minutes prior to the scheduled departure.  Carriage and other services provided by the carrier are subject to conditions of carriage, which are hereby incorporated by reference. These conditions may be obtained from the issuing carrier.  In case of cancellations less than 6 hours before departure please cancel with the airlines directly. We are not responsible for any losses if the request is received less than 6 hours before departure.  Please contact airlines for......

Words: 413 - Pages: 2

Premium Essay


...CHAPTER 10 : Correlation and Regression 10-1 : OVERVIEW • We consider sample data that comes in matched pairs. We are making inferences about the relationship between two variables. 10-2 : CORRELATION DEFINITION: Correlation – exists between two variables when the values of one of them are somehow associated with the values of the other. Linear Correlation – exists between two variables when there is a correlation and the plotted points of paired data result in a pattern that can be approximated by a straight line. [pic] DEFINITION: Linear correlation coefficient r : measures the strength of the linear relationship between the paired x and y – quantitative data in a sample. Its value is computed using formula 10-1. [pic] Example : Using the sample data below, find the value of the linear coefficient r. | |x |y |x•y |x2 |y2 | | |3 |5 | | | | | |1 |8 | | | | | |3 |6 | | | | | |5 |4 | | ...

Words: 949 - Pages: 4

Premium Essay


...A DATA MINING APPLICATION TO PREDICT THE INCOME LOSS, ITS EFFECT TO THE DAILY LIVES OF SELECTED JEEPNEY DRIVERS (PISTON-Lagro) DUE TO FARE DISCOUNTS A Thesis Proposal Presented to the Faculty of the College of Engineering and Technology New Era University In Partial Fulfillment of the Requirements for the Degree Computer Science By: JOMAR DAVE E. ASUNCION 2013 APPROVAL SHEET This thesis proposal titled “A DATA MINING APPLICATION TO PREDICT THE INCOME LOSS, ITS EFFECT TO THE DAILY LIVES OF SELECTED JEEPNEY DRIVERS (PISTON-Lagro) DUE TO FARE DISCOUNTS” prepared and submitted by Jomar Dave E. Asuncion in partial fulfillment of the requirements for the degree Computer Science has been examined and is recommended for acceptance and approval for Pre-Oral Examination. Adviser ------------------------------------------------- Approved by the committee on Pre-Oral Examination with a grade of ____ on _____________________ Chairperson Member Member Accepted in partial fulfillment of the requirements for the degree Computer Science. ENGR. MICHAEL V. BENAVIDEZ Dean Chapter 1 THE PROBLEM AND ITS BACKGROUND INTRODUCTION The Philippines is well-known for the ingenuity of its people. This is nowhere reflected than in the diversity of transport vehicle available. Jeepney which is a testimony to the craftsmanship of the Filipino. An enterprising vehicle that continues to provide livelihood for the Filipinos, cheap......

Words: 1518 - Pages: 7

Free Essay


...Southwest Airlines runs a no-nonsense company. They have planned ahead to remove wasteful spending in all that they do. The first example is the fact that they use all Boeing 737 aircraft and only 4 models of that airplane. This gives them the ability to streamline their maintenance. Their mechanics can work on any aircraft with the minimum of necessary training. They can also carry a smaller cash of parts that can be used more broadly. They have a simple structure for selling airfare, discount to full fare. Discount fares are only sold on-line, which is most likely the cheapest venue for selling them and they are issued with restrictions. . They require oversized customers to purchase an extra ticket which they can have reimbursed should that action prove to not have been necessary. Specialty tickets are spelled out for the customer and explained fully on the website. Full fares are sold by phone. They do not serve food on their flights, only snacks and drinks. This allows them to simplify their hospitality staff and procedures. Drinks are not sold via cash, so they do not have to provide the extra security and accountability associated with carrying around cash. They have set a policy for bumping customers that is generous but straight forward. They do not subsidize other airlines and they have the service network and volume to make that work while still taking care of their customers. They have enumerated all their procedures for each contingency on their......

Words: 317 - Pages: 2

Free Essay

Sales & Marketing Manager

...CiTylinK Promotion General Terms and Conditions CiTylinK Promotion General Terms and Conditions These Promotion general terms and conditions apply to each and every Promotion. In addition, all instructions, rules and conditions relating to a specific Promotion form part of these general Promotion terms and conditions but in the event of conflict these provisions shall prevail. Standard CiTylinK Terms and Conditions (including Terms and Conditions for Passengers and Baggage, Carrier’s Regulations and Privacy Policy) apply (please visit for full details). In the event of any conflict Standard Terms and Conditions shall prevail over these provisions. CiTylinK reserves the right to change the terms and conditions of its Promotions (and any Standard CiTylinK Terms and Conditions) at its discretion. Promotion A Promotion is an entitlement to a Discount (up to the amount stated) off a qualifying booking, including airfare, taxes and charges. A Promotion is valid on the CiTylinK website, at all CiTylinK sales outlets and all ticketing agencies as well as for corporate clients who operate their own ticketing accounts with CiTylinK. A Promotion is subject to availability and is not an indication of availability. In particular, CiTylinK reserves the right to cancel a Promotion. A Promotion is not an entitlement to make a specific booking or to travel on a specific date or via a specific route. Redeeming Promotion A Promotion can only......

Words: 798 - Pages: 4