Weighted Average Cost of Capital (WACC) Explained with Formula and Example.
The weighted average cost of capital (WACC) is a financial metric that calculates the average cost of a company’s capital, which includes both debt and equity. The WACC is used to discount a company’s future cash flows in order to determine their present value. The WACC formula is: WACC = (E/V) x Re + (D/V) … Read more