|weighted average cost of capital, k
||Weighted average cost of capital, K
(WACC, C, required return, hurdle rate)
K is the sum of the cost of debt and the cost of equity in a business.
[K= Ke + Kd= (Ke% Equity) + (Kd% Debt)
K% = (Wd Kd% ) + (We Ke%)
Wd is the weight of debt as a proportion of total capital.
We is the weight of equity as a proportion of total capital.
Kd is the cost of debt.
Ke is the cost of equity.|