In general, a company’s WACC is typically considered to be the minimum required return that investors expect to receive for providing capital to the company. This formula calculates a weighted ...

Conversely, a lower WACC signals relatively low financing cost and less risk. "The formula uses the cost of each of the sources of capital and weighs them relevant to the market value of the ...

To adjust WACC for risk-adjusted WACC, you can use the following formula: WACC = (E / V) x Re + (D / V) x Rd x (1 - T) + RP where E is the market value of equity, D is the market value of debt ...

Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.