- Published on
WACC: Weighted Average Cost of Capital
- Authors

- Name
- Ease Pro
WACC
Theory meets reality, are you calculating it right?
Cost of equity
The cost of equity represents the return that equity investors expect to receive on their investment. It is typically calculated using the Capital Asset Pricing Model (CAPM).
Cost of Debt
The cost of debt is the effective rate that a company pays on its borrowed funds. It is calculated by considering the interest rates on the company's debt, adjusted for the tax shield benefit.
