Answered By: Peter Z McKay
Last Updated: Oct 29, 2014     Views: 1656

  • Bloomberg
    Enter: Ticker <EQUITY> WACC <GO>

Definition

  • 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.}