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WACC: Weighted Average Cost of Capital

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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.