WACC Computation
Compute weighted average cost of capital using CAPM, market rates, and capital structure weights.
This skill systematically computes the weighted average cost of capital by guiding AI agents through each component: cost of equity via the Capital Asset Pricing Model, cost of debt adjusted for tax shields, and capital structure weighting based on market values. It helps determine the appropriate discount rate for DCF models and investment appraisal. Ideal for valuation analysts, corporate finance professionals, and students building financial models. MIT licensed and open source. For educational and productivity use only. Always verify AI-generated outputs with a qualified professional before acting on them.
Use Cases
- ✓Calculate weighted average cost of capital
- ✓Estimate cost of equity using CAPM
- ✓Determine optimal capital structure
- ✓Use WACC as discount rate in DCF models
Trigger Phrases
How to Install
Copy the skill content, paste it into your AI agent's system prompt or project instructions, then describe your task.
Paste the skill link or content into your AI agent's system prompt or project instructions.
Requirements
- Claude Code or equivalent
- Company balance sheet
- Beta and market risk premium data