Views expressed in this publication are not necessarily those of the Department of Defense. Although some of the commonly referenced resilience constructs are outlined below, it is difficult to. say whether they are all valid and reliable factors due to the way in which resilience was defined in. the various studies.
Finally â Capital Structure. The WACC is the weighted average of the cost of equity and the cost of debt based on the proportion of debt and equity in the company's capital structure. The proportion of debt is represented by D/V, a ratio comparing the company's debt to the company's total value (equity + debt).ACC, in other words, represents the investor's opportunity cost of taking on the risk of putting money into a company. To understand WACC, think of a company as a bag of money. The money in the bag comes from two sources: debt and equity.
Weighted Average Cost of Capital (WACC) Weighted Average Cost of Capital Definition. Weighted average cost of capital, defined as the overall cost of capital for all funding sources in a company, is used as commonly in private businesses as it is in public businesses. A company can raise its money from three sources: equity, debt, and preferred stock.