The weighted average cost of capital represents the annual before-tax percentage cost of the debt.

Name: The weighted average cost of capital represents the annual before-tax percentage cost of the debt.
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The weighted average cost of capital (WACC) represents the average cost of all capital sources (including debt and equity) and is usually an after-tax cost. It takes into account the proportion of each capital source and its respective cost.

The Weighted Average Cost of Capital Represents the Annual Before-Tax