Weighted Average Cost Of Capital

Las Vegas Sands Corp. (LCR.DE)

37.19 €

0.00 (0.00%)
Share price $ 37.19
Beta 1.247
Diluted Shares Outstanding 764
Cost of Debt
Tax Rate 232.08
After-tax Cost of Debt -5.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.519
Total Debt 14,795
Total Equity 28,413.16
Total Capital 43,208.16
Debt Weighting 34.24
Equity Weighting 65.76

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.