weighted cost of capitak
Weighted Average Cost of Capital. Weighted average cost of capital (WACC) is the average of the minimum after-tax required rate of return which a company must earn for all of its security holders (i.e. common stock-holders, preferred stock-holders and debt-holders).e can also estimate it using MS Excel RATE function. For inclusion in WACC, we need after-tax cost of debt, which is 7.427% [= 10.61% Ã (1 â 30%)]. Having all the necessary inputs, we can plug the values in the WACC formula to get an estimate of 9.82%.