How do I calculate the weighted average cost of capital?
In order to calculate Weighted Average Cost of Capital (WACC) first you need to find out the costs for individual componant of capital. (cost of Ordinary shares, cost of preference shares, cost of debentures, cost of loan etc..) Then take the average of all such costs, based on the value (market or book) of each of cpital componants. That is the WACC.
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