Answered By: Peter Z McKay Last Updated: Oct 29, 2014 Views: 2091
Answered By: Peter Z McKay
Last Updated: Oct 29, 2014 Views: 2091
<EQUITY> WACC <GO>
- Wighted Average Cost of Capital - WACC
A calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All capital sources - common stock, preferred stock, bonds and any other long-term debt - are included in a WACC calculation.
[Source: Investopedia. See full entry for the formula and an explanation of its significance. See also:
"Investors Need a Good WACC," by Ben McClure, for an article on how investors can us it for valuation.}