The weighted average cost of capital calculates the average current cost of issued or new issuance of debt and equity for a firm.

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The weighted average cost of capital (WACC) is a calculation of the average cost of a company's debt and equity, weighted by the proportion of each in the company's capital structure. It represents the cost of capital the company must pay to finance its assets, and is an important tool for financial analysis and strategic decision-making.

The Weighted Average Cost of Capital Calculates the Average Current