What is the WACC equation?

Answer by  getitwhileyoucan2010 (41)

(WACC)= E/V * Re + D/V * Rd * (1-Tc) Re = cost of equity Rd = cost of debt E = market value of the firm's equity D = market value of the firm's debt V = E + D E/V = percentage financing that is equity D/V = percentage financing that is debt Tc = corporate tax rate

Answer by  Munawer (365)

wacc = (We * Re)+ (Wd * Rd)(1-Tc) We proportion of equity Re cost of equity Wd proportion of debt Rd cost of debt Tc tax rate

Answer by  sarvan (20)

Wacc=(e/. W+e). Y+(d/d+e). d(1-tc) D=total debt E=total market value of equity y=required rate of return d=required rate of borrowings tc=corporate tax rate. it is the equation for WACC. WACC(weighted average cost of capital) provides the minimum return from creditors,owners and other providers of capital. WACC collect money from many source thats like equity funds,offers and government capitals.