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Level 17
· ◆◆◆ · ~12 min
The Cost of Capital & WACC
The Cost of Capital & WACC
"The firm is financed by debt and equity, each with its own required return. Blend them — after the tax break on debt — and you get the rate that discounts the whole business."
the firm's blended cost of capitalthe WACC formulathe after-tax cost of debtwhen the WACC is the right rate
A short lesson, then a quiz. ❤️×3 — a wrong answer costs a heart; finish with at least one left and the level is yours. Lose all three and you'll have to try again. Replay any time — XP and cleared levels are never lost.