The weighted average cost of capital (WACC) is a measure of the average rate of return that a company is expected to pay to its investors to finance its assets. The WACC takes into account the ...

Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.

Because many projects are funded in multiple ways, companies will often calculate a weighted average cost of capital (WACC) in budgeting for a potential new initiative. The discount rate is the ...