Thread: 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?

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?

here is the formula