Real Estate Glossary

Cost Of Capital/Weighted Average Cost Of Capital

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Richard Wilson
Written by Richard Wilson

WACC for short, this refers to the cost to a company raising capital in the form of equity either through common or preferred stock, or debt. Equity capital includes both the expected equity growth and the dividend rate either by growth in stock prices or higher dividends. Debt capital, on the other hand, is the interest expense on the debt incurred.

WACC for short, this refers to the cost to a company raising capital in the form of equity either through common or preferred stock, or debt. Equity capital includes both the expected equity growth and the dividend rate either by growth in stock prices or higher dividends. Debt capital, on the other hand, is the interest expense on the debt incurred.

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Richard Wilson

Richard Wilson

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