The weighted average of capital is

The weighted average of capital is the total value of capital minus the average relative to the total amount of debt and equity. When calculating the weighted average cost of capital, the sum of the cost of debt capital and the cost of equivalent capital must be determined, And their share of total capital. The determination methods of capital cost in calculation are widely used: Capital Asset Pricing Model (CAPM), dividend dividend method and multi factor model method, Medium term rate of return method, etc. D。 One is to use the capital asset pricing model to predict the higher capital cost However, the above calculation methods have their own advantages and disadvantages, and enterprises should avoid using them, The appropriate calculation method shall be selected according to the specific situation of the economic environment.