What’s on the WACC poster
The rule, 3 worked examples, and the mistake everyone makes.
- The weighted average cost of capital blends the after-tax cost of debt with the cost…
- WACC = (E/V)Re + (D/V)Rd(1 − t)
- Debt is cheaper = Lower risk, and tax deductible
- More debt = Equity gets riskier
- Use as = Discount rate for average-risk projects
- Common mistake: Using WACC for every project → Adjusting for project risk
The tax shield is why debt appears cheap. Interest reduces taxable profit; dividends do not.
Questions about the WACC poster
- What’s on the WACC poster?
- The rule, 3 worked examples, and the mistake everyone makes. The weighted average cost of capital blends the after-tax cost of debt with the cost…; WACC = (E/V)Re + (D/V)Rd(1 − t); Debt is cheaper = Lower risk, and tax deductible; More debt = Equity gets riskier; Use as = Discount rate for average-risk projects; Common mistake: Using WACC for every project → Adjusting for project risk. The tax shield is why debt appears cheap. Interest reduces taxable profit; dividends do not.
- Who is the WACC poster for?
- WACC belongs to the Accounting & Finance section rather than to a school year, because business is not something one grade owns. Anyone learning corporate finance can pin it up — a beginner, a student mid-course, or someone revising years later.
- When should you use the WACC poster?
- It is a weighted average of what debt and equity each demand. A wall chart earns its place by being glanceable from where the work is happening, so WACC belongs on the wall where that business work actually happens, within glancing distance, rather than filed away.
- What other posters go with WACC?
- Behavioural Finance, Capital Structure and CAPM sit alongside WACC in the Accounting & Finance section. Printed together they make a wall rather than a single sheet, which is how a reference set actually gets used.Behavioural FinanceCapital StructureCAPM
- Is the WACC poster free to download and print?
- Yes. WACC downloads as a free PDF with no account, no email and no watermark, like everything else in the Accounting & Finance section. Print as many copies as you like for a home, a classroom, a library or a tutoring group; reselling the file is the only thing the licence rules out.Read the licence
- What size does the WACC poster print at?
- WACC is a vector PDF laid out for US Letter, and prints on A4 with Fit to page — the same file, no separate download. Because every mark on it is drawn rather than photographed, it stays sharp enlarged to A3, A2 or A1 at a copy shop. Colour carries emphasis only, so a greyscale print of WACC loses nothing.Printing guide
Related posters
Charts that sit alongside WACC on the same wall.
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