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.

The weighted average cost of capital (WACC) is a financial ratio ... a lower WACC signals relatively low financing cost and less risk. "The formula uses the cost of each of the sources of capital ...

The standard WACC equation is: A firm's WACC is the ... Companies often use the weighted average cost of capital to determine whether beginning or continuing a project is feasible.

The weighted average cost of debt and equity of a company is used by investors to calculate cost ... and it is used by investors to help them decide whether or not to invest. Return on Invested ...

Two primary formulas are used to determine the discount rate: the weighted average cost of capital (WACC) and the adjusted present value (APV). The WACC discount formula is WACC = E/V × Ce × D ...