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