Formula for Cost of Capital can be written as- Cost of Capital Cost of Debt Cost of Equity Examples of Cost of Capital Formula With Excel Template. To calculate the Weighted Marginal Cost of Capital a company can use the following formula. Step 3 Find the Cost of Equity.
Therefore the WACC will be calculated by solving the formula.
The market value of equity is also. This implies that the overall cost of capital employed by Aero Ltd is 13. Problems with the Weighted Average Cost of Capital. Generic debtequity and incorporating tax.