Weighted Average Cost of Capital (WACC)
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Weighted Average Cost of Capital (WACC)

Intuition Publishing
Updated Sep 23, 2020

The weighted average cost of capital measures a company's cost of capital by taking into account the costs of debt and equity and the proportions of debt and equity in the company's capital structure. Here we show you how to calculate WACC and adjust the calculation for the effect of the tax break on the cost of debt.