Weighted Average Cost of Capital | CPA Exam BAR | Corporate Finance Course

In this video, I discuss weighted average cost of capital. The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets.
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[@kiruthikaramesh3974]

while preparing the cost of equity as per CAPM why the risk free rate(.01) is not subtracted from market risk premium (.095) ?

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Market Risk premium=Return from market - Risk free rate(Rm - Rf)