Weighted Average Cost of Capital (WACC) - Formula, Examples
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SOLVED: Weighted Average Cost Of Capital - WACCThe weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.To calculate WACC, multiply the cost of each capital component by its proportional weight and take the sum of the results. The method for calculating WACC can be expressed in the following formula:WACC = (E/V) * Re (D/V) * Rd * (1 - Tc)Where:Re = cost of equityRd = cost of debtE = market value of th
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