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.
In economics and accounting, the cost of capital is the cost of a company's funds (both debt and equity), or, from an investor's point of view the required rate of return on a portfolio company's existing securities.It is used to evaluate new projects of a company.his means, for instance, that the past cost of debt is not a good indicator of the actual forward looking cost of debt. Once cost of debt and cost of equity have been determined, their blend, the weighted average cost of capital (WACC), can be calculated.
Below is graphical representation of the market value of the weighted average cost of capital calculations. It shows how the capital structure is divided in to 3 parts consisting of $480,000 debt (9% in blue), $650,000 of preferred stock (12% in pink) and $4,200,000 of common stock (79% in green).eighted Average Cost of Capital is a calculation of the overall cost of capital used by a corporation and is an average representing the total return (in percent) that is expected of an organization on all its assets, debts and ownerâs equity to maintain its current stock price & valuations.