Financial Management

HOW TO CALCULLATE WEIGHTED AVERAGE COST OF CAPITAL

WEIGHTED AVERAGE COST OF CAPITAL

Weighted Average Cost of capital (WACC) is a capital that the company raises from various sources which include raising money through listing the company shares on the stock exchange (Equity), preferred stock, or by interest-paying bond or taking commercial loans (debt). The cost of each type of capital is weighted by its percentage of total …

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