This video provides a comprehensive guide to solving the most complicated weighted average cost of capital (WACC) questions using a structured flowchart. It breaks down WACC into three main components: Equity, Debt, and Preferred Shares, ensuring you understand each element step-by-step. You'll learn how to calculate the market value and cost for each type of financing using core formulas from equity and bond valuation chapters. The video explores crucial concepts such as: (a) Market value calculations (e.g., shares outstanding × price per share). (b) Cost of financing (e.g., CAPM for equity, YTM for debt, and perpetuity formulas for preferred shares). (c) Key formulas, such as the constant growth DDM, bond valuation, and CAPM, are reviewed in detail. You’ll also learn how to adjust for compounding periods, premium/discount scenarios, and dividend-based pricing for preferred shares. Finally, the video applies the flowchart to two exam-like questions. The first is a step-by-step walkthrough, while the second provides a faster-paced review to consolidate your understanding. Whether you’re preparing for exams or professional assessments, this video equips you with the tools to confidently tackle WACC questions.