Views expressed in this publication are not necessarily those of the Department of Defense. Although some of the commonly referenced resilience constructs are outlined below, it is difficult to. say whether they are all valid and reliable factors due to the way in which resilience was defined in. the various studies.
Finally â Capital Structure. The WACC is the weighted average of the cost of equity and the cost of debt based on the proportion of debt and equity in the company's capital structure. The proportion of debt is represented by D/V, a ratio comparing the company's debt to the company's total value (equity + debt).ACC, in other words, represents the investor's opportunity cost of taking on the risk of putting money into a company. To understand WACC, think of a company as a bag of money. The money in the bag comes from two sources: debt and equity.
Factors Affecting the Cost of Capital. The marginal cost of capital (MCC) is the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised. As more capital is raised, the marginal cost of capital rises.With the weights and costs given in our previous example, we computed Newco's weighted average cost of capital as follows: WACC = (wd)(kd)(1-t) + (wps)(kps) + (wce)(kce).actors Affecting the Cost of Capital. The marginal cost of capital (MCC) is the cost of the last dollar of capital raised, essentially the cost of another unit of capital raised. As more capital is raised, the marginal cost of capital rises.