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Weighted average cost of capital: Difference between revisions

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Created page with "'''Weighted average cost of capital''' ('''WACC''') is the average rate of return that a company is expected to pay to all of its providers of capital, including shareholders and creditors, weighted according to the proportion of equity and debt in its capital structure. It represents the minimum return that a company must earn on its investments to satisfy investors and creditors while maintaining its market value. The weighted average cost of capital reflects the..."
 
 
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The weighted average cost of capital is calculated as:
The weighted average cost of capital is calculated as:


```wiki
<math>
<math>
WACC=\left(\frac{E}{V}\times R_e\right)+\left(\frac{D}{V}\times R_d\times(1-T)\right)
WACC=\left(\frac{E}{V}\times R_e\right)+\left(\frac{D}{V}\times R_d\times(1-T)\right)
</math>
</math>
```


where:
where:
Retrieved from "https://wiki.indrastra.com/index.php/Weighted_average_cost_of_capital"