For debt capital the cost is either the actual interest. Mathematically the Weighted Average Cost of Capital Formula can be expressed as WACC EV Re DV Rd 1-TC. V E D firm value.
A firms Weighted Average Cost of Capital WACC represents its blended cost of capital across all sources including common shares preferred shares and debt.
For debt capital the cost is either the actual interest. For debt capital the cost is either the actual interest. Calculating the Weighted Average Cost of Capital Once you have calculated the cost of capital for all the sources of debt and equity and gathered the other information needed you can calculate the WACC. E market value total equity.