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What is WACC?

Weighted average cost of capital: (E/V) × cost of equity + (D/V) × cost of debt × (1 − tax rate).

Where you will use it: this term comes up in the Entrepreneurial Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Entrepreneurial Finance course by Devon Coombs, CPA, MBA.