Define weighted average cost of capital


Problem:

Capital is one of the most important resources for business firms. It is important for managers to be aware of their cost of capital. To determine cost of capital, an important concept is weighted average cost of capital.

Define Weighted Average Cost of Capital (WACC).

How WACC is calculated ?

Take an example of a large and popular public company and calculate its WACC.

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Finance Basics: Define weighted average cost of capital
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