What you should know about the

Liquid capital is only available to companies to a limited extent. These liquid funds consist of both equity and debt.

Interest is paid on the borrowed capital. But shareholders also expect a return on their capital. So using liquid capital to make a purchase is not free of charge.

The “weighted average cost of capital” (WACC) represents – in simplified terms – the average of the interest on borrowed capital and the expected shareholder return, expressed as a percentage.

When it comes to deciding whether and how to invest, the WACC is often used as a decision criterion by companies pursuing a “value-driven investment strategy”.

This calculator uses either the WACC officially determined by Price Waterhouse Cooper* per industry or the individually entered cost of capital.

The results are therefore based on the selected or entered values.

* https://pwc-tools.de/kapitalkosten/en/


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