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 (WACC) is the average after-tax cost of a companyâs various capital sources, including common stock, preferred stock, bonds and any other long-term debt.A company has two primary sources of financing-debt and equity-and, in simple terms, WACC is the average cost of raising that money.eighted average cost of capital (WACC) is the average after-tax cost of a companyâs various capital sources, including common stock, preferred stock, bonds and any other long-term debt.