So weight average cost of capital is 8. Below is the formula for the cost of equity. WACC WACC is a firms Weighted Average Cost of Capital and represents its blended cost of capital including equity and debt.
Lets say we have a company for which we know the total debt.
DV percentage of financing that. Weight average cost of capital is calculated as. The weighted average cost of capital WACC is a calculation of a companys cost of capital or the minimum that a company must earn to satisfy all debts and support all assets. WACC Formula and Calculation.