(plural weighted-average costs of capital)
- A calculation of the overall cost of capital used by an enterprise, made by totalling the cost of each source of capital used multiplied by its proportional share of the total capital used. Abbreviation: WACC.
weighted average cost of capital - Investment & Finance Definition
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.