Question

Is the symbol that represents the cost of raising capital by issuing new stock in the weighted?

Answer 1

In the Weighted Average Cost of Capital (WACC) equation, the symbol "Ke" represents the costs of raising capital by issuing new stock.

The full WACC formula is below:

WACC Formula = (E/V * Ke) + (D/V) * Kd * (1 – Tax rate)