Meaning and formula of WACC

WACC – Weighted Average cost of capital – (E/E+D)*Ke + [D(1-t)/E+D]*Kd E – Market Value of Equity D – Market Value of Debt Ke – Cost of equity Kd – Cost of Debt T – Tax rate A company is typically financed using a combination of debt (bonds) and equity (stocks). Because a company may…...