RE: Repair Cost: Rear Main Seal? I have a 1997 Lexus ES 300, and it appears to be leaking oil at the rear main seal connection. How much would it cost to replace, and what other parts/belts should be replaced during that same repair (e.g. water pump, timing belt, etc)? have a 1997 Lexus ES 300, and it appears to be leaking oil at the rear main seal connection.
From Wikipedia, the free encyclopedia. In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view the required rate of return on a portfolio company's existing securities.It is used to evaluate new projects of a company.ince in most cases debt expense is a deductible expense, the cost of debt is computed as an after tax cost to make it comparable with the cost of equity (earnings are tax as well). Thus, for profitable firms, debt is discounted by the tax rate.
For example, if the market value of a company's equity is $600 million and it has $400 million of debt on its balance sheet, then 60% of its capital is equity and 40% is debt. If the company's cost of equity is 10% and its cost of debt is 7%, then its WACC is:(60% x 10%) + (40% x 7%) = 8.8%. Note: If using the cash flow to the firm DCF method, the WACC would be your discount rate. company's cost of capital is exactly as its name implies. When a company raises capital from its lenders and owners, both types of investors require a return on their investment. Lenders expect to be paid interest on their loans, while owners expect a return, too.