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Example of WACC

WACC, or Weighted Average Cost of capital is a fee businesses and companies pay to its creditors to cover the costs of company assets and liabilities.

WACC Formula:
WACC= (E/ (E+D)) * y+ (D/ (E+D)) * y * (1-Tc)
y = cost of equity/debt
E =the business's equity (monetary value)
D = the business's debt (monetary value)
Tc = percentage of corporate tax rate

Examples of WACC:

http://business.library.emory.edu/cgi-bin/faq/recordDetail?id=9009&action=&library=emory_business&institution=emory
http://cbdd.wsu.edu/kewlcontent/cdoutput/TR505r/page28.htm
http://en.wikipedia.org/wiki/WACC
http://en.wikipedia.org/wiki/Weighted_average_cost_of_capital
         


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