WACC (Cost of Capital) Calculator computes:

**Cost of Equity**After-tax

**Cost of Debt**Weighted average

**Cost of Capital**

The cost of capital represents an investor's required rate of return on an investment and should be a company's minimum acceptable rate of return for anticipated investments. It should be a company's objective to earn rates of return above its cost of capital to maximize its shareholder's investment.

Note: | For all numeric values, use integers with decimal places. For example, enter 5.57% as 5.57, not .0557. |

In Cost of Preferred, enter a value.

Use zero if the company you are analyzing does not have preferred stock.

In Debt To... Ratio, enter a value to base leverage ratio on Equity or Total Capital.

In Preferred to... Ratio, enter a value to base the leverage ratio on Equity or Total Capital.

Results displays the values of:

**Cost of Equity**After-tax

**Cost of Debt**Weighted average

**Cost of Capital**