weighted average cost of capital
Definition
Cost of acquiring debt and/or equity capital, computed on the basis of interest rate, income tax rate, and return on equity goal. Expressed usually as a percentage, it is used as a discount rate to determine present value of specific investments. See also composite cost of capital.
weighted average cost of capital is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
weighted average cost of capital appears in the definition of the following term: composite cost of capital
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