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After-tax weighted average cost of capital: The same calculation method as detailed earlier but with the cost of debt modified to reflect the company's tax rate (since interest can be deducted).
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Understanding Weighted Average Cost of Capital (WACC) - MSNThe weighted average cost of capital (WACC) is a financial ratio that measures a company's financing costs. It weighs equity and debt proportionally to its percentage of the total capital structure.
The weighted average cost of capital, or WACC, is a key business metric, usually expressed as a percentage or ratio, which measures the costs associated with raising funds through different ...
The cost of equity also plays a role in the weighted average cost of capital (WACC). This combines the costs of debt and equity to determine a company's overall cost of capital.
For most of the last 15 years, capital has been cheap. Since 2009, the after-tax cost of borrowing for some large companies has been below the rate of inflation, making their debt in real terms ...
The median return on capital employed (ROCE) in this segment has steadily decreased over the past four years, yet still surpassed the median weighted average cost of capital (WACC) by about 2.5 ...
The cost of equity helps to assign value to an equity investment. Cost of equity measures an asset's theoretical return to ensure that it's commensurate with the risk of investing capital.
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