function calculateHurdleRate() {
var riskFreeRate = parseFloat(document.getElementById("riskFreeRate").value);
var beta = parseFloat(document.getElementById("beta").value);
var equityRiskPremium = parseFloat(document.getElementById("equityRiskPremium").value);
var costOfDebt = parseFloat(document.getElementById("costOfDebt").value);
var debtWeight = parseFloat(document.getElementById("debtWeight").value);
var taxRate = parseFloat(document.getElementById("taxRate").value);
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (isNaN(riskFreeRate) || isNaN(beta) || isNaN(equityRiskPremium) || isNaN(costOfDebt) || isNaN(debtWeight) || isNaN(taxRate)) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
// Calculate Cost of Equity using CAPM
var costOfEquity = riskFreeRate + beta * equityRiskPremium;
// Calculate After-Tax Cost of Debt
var afterTaxCostOfDebt = costOfDebt * (1 – taxRate);
// Calculate Weight of Equity
var equityWeight = 1 – debtWeight;
// Calculate Weighted Average Cost of Capital (WACC) as the Hurdle Rate
var hurdleRate = (equityWeight * costOfEquity) + (debtWeight * afterTaxCostOfDebt);
resultDiv.innerHTML = "
Calculation Results
" +
"
Cost of Equity (CAPM): " + (costOfEquity * 100).toFixed(2) + "%" +
"
After-Tax Cost of Debt: " + (afterTaxCostOfDebt * 100).toFixed(2) + "%" +
"
Equity Weight: " + (equityWeight * 100).toFixed(2) + "%" +
"
Debt Weight: " + (debtWeight * 100).toFixed(2) + "%" +
"
Calculated Hurdle Rate (WACC): " + (hurdleRate * 100).toFixed(2) + "%";
}
.calculator-container {
font-family: sans-serif;
max-width: 700px;
margin: 20px auto;
padding: 20px;
border: 1px solid #ddd;
border-radius: 8px;
box-shadow: 0 2px 4px rgba(0,0,0,0.1);
}
.calculator-form h2 {
text-align: center;
margin-bottom: 20px;
color: #333;
}
.calculator-form p {
margin-bottom: 15px;
color: #555;
line-height: 1.6;
}
.form-group {
margin-bottom: 15px;
}
.form-group label {
display: block;
margin-bottom: 5px;
font-weight: bold;
color: #444;
}
.form-group input[type="number"] {
width: calc(100% – 22px);
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
box-sizing: border-box;
}
.form-group input[type="number"]:focus {
border-color: #007bff;
outline: none;
}
.calculator-form button {
width: 100%;
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
cursor: pointer;
transition: background-color 0.2s ease;
}
.calculator-form button:hover {
background-color: #0056b3;
}
.calculator-result {
margin-top: 25px;
padding: 15px;
background-color: #e9ecef;
border: 1px solid #ced4da;
border-radius: 4px;
}
.calculator-result h3 {
margin-top: 0;
color: #333;
}
.calculator-result p {
margin-bottom: 8px;
color: #555;
}
.calculator-result p:last-child {
margin-bottom: 0;
}