The weighted average cost of capital ... This formula calculates a weighted average by factoring in the proportions of equity and debt in the capital structure and their respective costs.

See how we rate investing products to write unbiased product reviews. The weighted average cost of capital (WACC ... business's corporate tax rate. A more complicated formula can be applied ...

The real cost of debt is equal to interest paid minus any tax deductions on ... such as U.S. Treasurys after accounting for market risk and unsystematic risk. WACC considers all capital sources ...

Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.