Weighted Average Cost of Capital Calculator

Category Financial
Financial Business
Business
Selected Formula
Market value of the firm’s equity (Input)
Firm Value (Input)
Cost of Equity (Input)
Market value of the firm’s debt (Input)
Cost of Debt (Input)
Corporate Tax Rate (Input)
  • Market value of the firm’s equity - Market value of equity is the total dollar market value of all of a company's outstanding shares.
  • Firm Value - Firm Value is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization.
  • Cost of Equity - Cost of equity is the return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertake by investing their capital.
  • Market value of the firm’s debt - Market value of debt is the total dollar debt value of all of a firm such as bonds and loans.
  • Cost of Debt - Cost of debt is the interest a company pays on its borrowings.
  • Corporate Tax Rate - corporate tax rate is the rate at which levy is placed on the profit of a firm to raise taxes.

Financial

  

What is Weighted average cost of capital?

We need calculators on a regular basis in order to simplfy the complex process of calculating. Weighted average cost of capital calculator provides for the same. We have simplified the entire process of calculating Weighted average cost of capital. All you have to do is provide the input values and hit calculate. You will get the answer for Weighted average cost of capital without getting into the complex process of actually calculating anything. The definitions and meanings of all variables used in the formula are also provided. If you don’t have the values of all variables and you need to calculate some, even that is possible as we provide you different variants and derived formulae as well.