What is WACC?
Weighted average cost of capital, corporate finance’s blended discount rate: D/V × Cost of Debt × (1 − Tax Rate) + E/V × Cost of Equity, applied to after-tax enterprise cash flows. The real estate analogue is the pre-tax unlevered property discount rate.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.