Weighted Average Cost of Capital Explained – Formula and Meaning
Valutico
APRIL 17, 2023
It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). The WACC formula derives the current cost of each form of finance, starting with the risk-free rate, the expected return on equity, and the costs associated with debt financing. A beta of 1.0
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