dsoftware.king wrotehence, not all expenses/losses are deductible when calculating your taxable income.
I've been tasked to do a DCF to attain the enterprise value for a company. I'm trying to calculate the proper WACC to discount my future cash flows but I have some tricky inputs (all assumptions given).
Year 1: The company takes a loan for $10,000,000 and gains equity from investors worth $10,000,000
Year 2: The company repays $5,000,000 of the loan
Year 3: The company repays $5,000,000 of the loan.
Now I'm trying to get an enterprise value, and I calculated what the FCF's are, but now I need to discount them at WACC. I know my cost of equity and I know my cost of capital, but what weights do I use when calculating WACC?