Weighted Average Cost Of Capital

Sharing Services Global Corporation (SHRG)


-0.00 (-2.13%)
Share price $ 0.0,207
Beta 2.498
Diluted Shares Outstanding 206.21
Cost of Debt
Tax Rate 15.07
After-tax Cost of Debt 98.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity 15.197
Total Debt 10.49
Total Equity 4.27
Total Capital 14.76
Debt Weighting 71.09
Equity Weighting 28.91

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.