Enter the debt finance percentage in cell B53 and the cost of debt in cell B54. The debt finance percentage determines the level of debt which will be used to finance the business acquisition. This together with the cost of debt which is equal to the annual loan interest rate affects the calculation of the weighted average cost of capital (WACC) which is used as the discount rate for determining the present value of future cash flow projections and therefore the value of the business.

CopyFinancial > Enter the debt finance percentage in cell B53 and the cost of debt in cell B54. The debt finance percentage determines the level of debt which will be used to finance the business acquisition. This together with the cost of debt which is equal to the annual loan interest rate affects the calculation of the weighted average cost of capital (WACC) which is used as the discount rate for determining the present value of future cash flow projections and therefore the value of the business.