The reason for the negative weighted return is due to the substantial amount of money which was invested in a negative yielding investment option stock 3. Using the weighted average formula we get Weighted Avg w 1 x 1 w 2 x 2 w 3 x 3 w 4 x 4 Weighted Avg 10 5 20 10 30 15 40 20 0005 002 0045 008 15. This can give you a good handle on how much you are paying overall in terms of loan interest and give you a sense of your overall rate.
The reason for the negative weighted return is due to the substantial amount of money which was invested in a negative yielding investment option stock 3.
Since equity is only part of the companys capital structure lets calculate the WACC which is this formula. To get a weighted average of the price paid the investor multiplies 100 shares by 10 for year one and 50 shares by 40 for year two and then adds the results to get a total of 3000. X Research source To find your weighted average simply multiply each number by its weight factor and then sum the resulting numbers up the same way you would take the average of any other data set. This guide will provide an overview of what it is why its used how to calculate it and also provides a downloadable WACC calculator.