The Weighted average cost of capital (WACC) is the average rate that a firm is expected to pay to all creditors, owners, and other capital providers. We use it as a discount rate when calculating the net present value of an investment.
Some other related topics you might be interested to explore are Cost of Debt and Cost of Preferred Equity.
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Weighted average cost of capital is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum.
