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.
Weighted Average Cost of Capital. Weighted average cost of capital (WACC) is the average of the minimum after-tax required rate of return which a company must earn for all of its security holders (i.e. common stock-holders, preferred stock-holders and debt-holders).e can also estimate it using MS Excel RATE function. For inclusion in WACC, we need after-tax cost of debt, which is 7.427% [= 10.61% Ã (1 â 30%)]. Having all the necessary inputs, we can plug the values in the WACC formula to get an estimate of 9.82%.