What is the cost of capital?
Calculate WACC.
Inputs
CFO note
Treat the output as a decision aid, not a credit approval. Compare it with covenants, liquidity and the firm’s actual cash generation.
Stress test
Re-run the model with a weaker operating path: lower receipts, higher rates, or a sharper FX move.
Academic note
The formulas follow standard corporate-finance identities used in the related article. They do not replace a full credit file.