Weighted Average Cost Of Capital

Health Discovery Corporation (HDVY)


0.00 (0.00%)
Share price $ 0.0,003
Beta 1.853
Diluted Shares Outstanding 397.63
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 4.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.126
Total Debt 0.21
Total Equity 0.12
Total Capital 0.33
Debt Weighting 63.99
Equity Weighting 36.01

There are a number of methods that can be used to determine discount rates. A good approach – and the one we’ll use in this tutorial – is to use the weighted average cost of capital (WACC) – a blend of the cost of equity and after-tax cost of debt. A company has two primary sources of financing – debt and equity – and, in simple terms, WACC is the average cost of raising that money. WACC is calculated by multiplying the cost of each capital source (debt and equity) by its relevant weight and then adding the products together to determine the WACC value.