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| LaTeX Math Block | ||||
|---|---|---|---|---|
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{\displaystyle {\text{WACC}} = {\frac {E}{D+E}} \, K_E} + {\frac {D}{D+E}}\, K_D \cdot (1-T_c) |
where
| cost of equity | |||||
| cost of debt | normally means interest rate on the company loans | ||||
| usually between 15% and 30%, with median average close to 20% |
The immediate values of cost of debt and cost of equity are normally picked from market surveys.
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