Weighted average cost of capital

Weighted average cost of capital,

Definition of Weighted average cost of capital:

  1. Cost of acquiring debt and/or equity capital, computed on the basis of interest rate, income tax rate, and return on equity goal. Expressed usually as a percentage, it is used as a discount rate to determine present value of specific investments. See also composite cost of capital.

Meaning of Weighted average cost of capital & Weighted average cost of capital Definition