To calculate WACC use the WACC formula which is. The Weighted Average Cost of Capital is the calculation of the return a business has to pay per every penny being financed. Mathematically the Weighted Average Cost of Capital Formula can be expressed as WACC EV Re DV Rd 1-TC.
Market Value of Equity Number of shares outstanding x current price.
WACC is the. WACC E E D Ce D E D. The WACC formula is EV x Re DV x Rd x. Weighted Average Cost of capital takes into account the average of all the sources of finance being used by the business for the investment it includes the cost of.