What is a ‘composite cost of capital’?

4 years ago
Financial Management

Also known as the weighted average cost of capital (WACC), a composite cost of capital is a company’s cost to borrow money given the proportional amounts of each type of debt and equity a company has taken on.

WACC= Wd (cost of debt) + Ws (cost of stock/RE) + Wp (cost of pf. Stock)

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Sanisha Maharjan
Sanisha Maharjan
Jan 18, 2022
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