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The Weighted-Average Cost of Capital

Harris, Robert S.

Technical Note

The Weighted-Average Cost of Capital

Harris, Robert S.

F-1185 | Published June 17, 1997 | 7 pages Technical Note

Collection: Darden School of Business

Product Details

This note provides a conceptual introduction to the weighted-average cost of capital (WACC). It discusses and provides examples of calculating the WACC and its components. It is useful as a parallel reading for cases that require estimation of WACC or as background reading for a class discussion of WACC and its use as a hurdle rate.

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