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AAPL 189.07 +0.3 (+0.16%)MSFT 117.02 -0.72 (-0.62%)FB 167.35 +1.05 (+0.63%)ZNGA 5.3 -0.01 (-0.19%)NVDA 175.17 +1.31 (+0.75%)WBA 61.7 +0.14 (+0.23%)GOOG 1184.77 -8.35 (-0.70%)PIH 5.45 -0.16 (-2.85%)

Weighted Average Cost Of Capital AMZN Quote Amazon.com

Share Price $ 1785.94
Diluted Shares Outstanding 477
Cost of Debt
Tax Rate 20.3
After-tax Cost of Debt 4.5
Risk Free Rate
Market Risk Premium
Cost of Equity 14.70
Total Debt 23,495.00
Total Equity 880,468.42
Total Capital 903,963.42
Debt Weighting 2.60
Equity Weighting 97.40
Wacc
There are a number of methods that can be used to determine discount rates. A good approach – and the one we’ll use in this tutorial – is to use the weighted average cost of capital (WACC) – a blend of the cost of equity and after-tax cost of 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. WACC is calculated by multiplying the cost of each capital source (debt and equity) by its relevant weight and then adding the products together to determine the WACC value: