weighted average cost of capital

weighted average cost of capital definition - finance
The average cost that a firm has to pay for the capital that it borrows. It is calculated by weighting the individual interest rates paid on different amounts of borrowed funds to create an average cost of capital.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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