Weighted Average Cost of Capital (WACC)

Weighted Average Cost of Capital (WACC)

Weighted Average Cost of Capital (WACC)

A company’s Weighted Average Cost of Capital (WACC) is calculated by taking the average cost of its debt facilities and credit lines, calculating the cost of equity (using models such as the Capital Asset Pricing Model) and weighting the two by how much of each a company uses to fund its operations.

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