A »To calculate the weighted average cost of capital (WACC), you combine the cost of equity and the cost of debt, weighted by their respective proportions in the company's capital structure. The formula is: WACC = (E/V * Re) + ((D/V * Rd) * (1-Tc)), where E is equity, D is debt, V is total value, Re is cost of equity, Rd is cost of debt, and Tc is tax rate. For example, if a company has 60% equity at 8% and 40% debt at 5%, with a tax rate of 30%, WACC = (0.6*0.08) + ((0.4*0.05)*(1-0.3)) = 6.2%.

A »The weighted average cost of capital (WACC) is calculated by multiplying the cost of each capital component (debt and equity) by its proportion of total capital and summing the results. The formula is: WACC = (Cost of Equity * % Equity) + (Cost of Debt * % Debt * (1 - Tax Rate)).