Featured Announcements. The parents of Travis William Tennessen and Morgan Lee Holz are proud to announce the engagement of their children. Morgan, daughter of Bill and Nancy Holz, is a 2015 graduate from the University of Wisconsin - Oshkosh where she earned...
Weighted Average Cost of Capital or WACC. The WACC calculation is a calculation of a companyâs cost of capital in which each category of capital is equally weighted. All capital sources such as common stock, preferred stock, bonds and all other long-term debt are included in this calculation.urrently, Chevronâs has a Cost of Equity or R Equity of 6.72% so investors should expect to get a return of 6.72% per-year average over the long term on their investment to compensate for the risk they undertake by investing in this company. (Please note that this is the CAPM approach to finding the cost of equity.
Weighted Average Cost of Capital (WACC) is the average cost to a company of the funds it has invested in the assets of the company. This is composed of a possible combination of debt, preferred shares, common shares and retained earnings. All components of the cost of capital are determined at the current market rates.ince WACC Weighted Average Cost of Capital is the required rate of return used to make important decisions regarding a firmâs investments, it is important to estimate the firms cost of capital accurately.