Weighted Average Cost of Capital
GPTKB entity
Statements (30)
| Predicate | Object |
|---|---|
| gptkbp:instanceOf |
financial metric
|
| gptkbp:abbreviation |
gptkb:WACC
|
| gptkbp:affects |
market conditions
capital structure risk profile tax rates |
| gptkbp:appliesTo |
projects
firms |
| gptkbp:component |
D = market value of debt
E = market value of equity Rd = cost of debt Re = cost of equity Tc = corporate tax rate V = E + D |
| gptkbp:form |
WACC = (E/V) * Re + (D/V) * Rd * (1-Tc)
|
| https://www.w3.org/2000/01/rdf-schema#label |
Weighted Average Cost of Capital
|
| gptkbp:includes |
cost of debt
cost of equity cost of preferred stock |
| gptkbp:measures |
cost of capital
|
| gptkbp:purpose |
valuation
investment appraisal discount rate for NPV calculations |
| gptkbp:relatedTo |
gptkb:capital_asset_pricing_model
cost of capital internal rate of return net present value |
| gptkbp:usedIn |
corporate finance
|
| gptkbp:bfsParent |
gptkb:WACC
|
| gptkbp:bfsLayer |
7
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