WACC (Weighted Average Cost of Capital) Formula - Money Management


Formula:
WACC = (E/V × Re) + [(D/V × Rd) × (1-Tc)]
V = E + D



Where,

WACC = Weighted Average Cost of Capital
E = Market value of the firms equity
D = Market value of the firms debt
V = Firm Value
Re = Cost of Equity
Rd = Cost of Debt
Tc = Corporate tax rate

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