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Thread: How do you calculate Weighted Average Cost of capital (WACC)?

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    Bhavya's Avatar
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    How do you calculate Weighted Average Cost of capital (WACC)?

    Hello Friends,

    WACC is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.
    All sources of capital like common stock,preferred stock,bonds and other long term debt also included in a WACC calculation.


    Can someone explain me how to calculate WACC accurately?
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    Quote Originally Posted by Bhavya View Post
    Hello Friends,

    WACC is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.
    All sources of capital like common stock,preferred stock,bonds and other long term debt also included in a WACC calculation.


    Can someone explain me how to calculate WACC accurately?
    here is the formula
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