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?

Quote:

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Originally Posted by Bhavya

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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here is the formula
https://i.investopedia.com/inv/dicti...terms/wacc.gif