Book Value Of Debt Calculator

The weighted average cost of capital calculator is a very useful online tool.

Book value of debt calculator. The next step is to calculate the book value of debt by employing the above formula book value of debt long term debt notes payable current portion of long term debt usd 200 000 usd 0 usd 10 000 usd 210 000. Then enter the total debt which is also a monetary value. To use our free bond valuation calculator just enter in the bond face value months until the bonds maturity date the bond coupon rate percentage the current market rate percentage discount rate and then press the calculate button.

The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. The cost of debt measurement helps to find the financial condition of the company and also helps to know risk level of the company as if the debt of the company is high then risk associated of the company will be high based on which investor take the decision of. The risk is much higher than if liabilities were only 100 000.

Book value of the firm this can be calculated from the balance sheet of the corporation. It s simple easy to understand and gives you the value you need in an instant. C 1 1 1 kd t kd fv 1 kd t where c is the interest expense in dollars.

If the result is higher than one that s a sign the company is carrying a large amount of debt. There are two ways to calculate it. First enter the total equity which is a monetary value.

Note that the book value of the asset can never dip below the salvage value even if the calculated expense that year is large enough to put it below this value. For example suppose the company has 200 000 in assets and 250 000 in liabilities giving it a 1 25 debt ratio. Our free online bond valuation calculator makes it easy to calculate the market value of a bond.

Here are the steps to follow when using this wacc calculator. Once you know the book value divide the value of the debt by the assets. So we can see that the debt for xyz corporation is usd 210 000 which would be different from the market value of debt.