Weighted Average Cost of Capital definition

Weighted Average Cost of Capital or ‘cost of capital’ means the utility’s average cost of debt and equity capital:

Weighted Average Cost of Capital means a percentage equal to the weighted-average interest rate paid by the Company and its direct and indirect Subsidiaries on outstanding Indebtedness for the month immediately preceding the Calculation Date.

Weighted Average Cost of Capital means the cost of capital experienced by the Company during the Plan Year as determined by the Treasurer using the formula set forth in Exhibit A.

Examples of Weighted Average Cost of Capital in a sentence

• Determination of Weighted average cost of capital (WACC) and Marginal cost of capital.

• Weighted average cost of capital: 8.5% based on average from analysis firms and internal calculations.

• The Weighted average cost of capital is calculated as, the quotient of Equity Capital to Total Capital Employed (Equity Capital and Debt) multiplied by the return on Equity* plus the quotient of Debt to Total Capital Employed (Equity Capital and Debt) multiplied by the return on Debt adjusted by the company tax rate (due to tax saving on interest paid).

• Weighted average cost of capital (the average cost of equity and debt weighted by the prevailing proportions of debt to equity).

• Post-tax Weighted average cost of capital (WACC) is a minimum return that a project must earn on its asset base to satisfy its creditors, owners, and other providers of capital.

More Definitions of Weighted Average Cost of Capital

Weighted Average Cost of Capital. (also referred to as “WAAC”) means the Company’s weighted average cost of debt and equity expressed as a percent which represents the Company’s minimum required rate of return on capital, as determined for each Participation Pool. The WACC shall be recommended by Management and approved by the Committee on an annual basis prior to the beginning of each Year. The WACC shall be rounded to the nearest whole percent and is subject to adjustment by the Committee for significant changes in the Company’s capital structure and its cost of debt and equity.

Weighted Average Cost of Capital means the return on rate base

Weighted Average Cost of Capital means the same as defined in

Weighted Average Cost of Capital means the cost of capital that is calculated in accordance with the prescribed methodology; and

Weighted Average Cost of Capital means for any pricing year, the pre-tax nominal weighted average cost of capital used by Transpower to determine AC revenue or HVDC revenue (as the case may be) for that pricing year.

Weighted Average Cost of Capital means a percentage equal to the weighted-average interest rate paid by the Company and its direct and indirect Subsidiaries on outstanding Indebtedness (other than Excluded Indebtedness) for the month immediately preceding the Calculation Date. For purposes of the preceding sentence, the “interest rate paid” shall exclude all dividend payments made, and all commission payments and other underwriting compensation expenses incurred in connection with any financing transactions, by the Company and its direct and indirect Subsidiaries.

Weighted Average Cost of Capital means the estimated efficient cost of financing of the transportation licensee and which represents its allowed reasonable return.