Asked Nov 27, 2019

What is Weighted Average Cost of Capital or WACC? How can current economic and political environments impact a company's WACC? 


Expert Answer

Step 1

Weighted average cost of capital is the cost of capital to the firm inclusive of the cost of capital of all sources of funds procured by the firm.

Step 2

Formula to calculate WACC is as follows:

Step 3


E is the market value of equity

D is the market value of debt

V is t...

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