Weighted Average Cost of Capital

From MediaWiki
Revision as of 15:13, 28 December 2010 by Paulreed (talk | contribs) (Created page with "WACC is the propotion of the project that is financed using debt + the proportion of the project financed using equity if the cost of debt is 6% and equity shareholders expect 14...")
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

WACC is the propotion of the project that is financed using debt + the proportion of the project financed using equity if the cost of debt is 6% and equity shareholders expect 14% and the propotions are 50/50 then

WACC is 50%*6% + 50%*14%= 10%