W.A.C.C.

WACC = COST OF DEBT + COST OF EQUITY

Cost of debt
COD = RATE OF THE DEBT (1 – TAX RATE)

Cost of equity
COE = RISK FREE RATE OF RETURN + BETA × (MARKET RATE OF RETURN – RISK
FREE RATE OF RETURN)

Calculation for W.A.C.C

W.A.C.C = RATE OF THE DEBT (1 – TAX RATE) * % OF DEBT IN THE CAPITAL + (RISK
FREE RATE OF RETURN + BETA × (MARKET RATE OF RETURN – RISK FREE RATE OF
RETURN)) * % OF EQUITY IN THE CAPITAL