The average of a firm's cost of equity and aftertax cost of debt that is weighted based on the firm's capital structure is called the:

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The weighted average cost of capital (WACC) is the average cost of all the capital sources a firm uses to finance its operations, including equity, debt, and any other sources. It is computed as the weighted average of the cost of each component of capital, with the weights being the proportion of that component in the firm's capital structure. This is important for firms when determining whether an investment opportunity is worth pursuing or not, since the expected return of the investment should be greater than the WACC to be profitable.

The Average of a Firm's Cost of Equity and Aftertax