Weighted Average Cost of Capital A firm normally finds its weighted average cost of capital (WACC)by combining the cost of equity with the cost of debt in proportion to the relative weight of each in the firm's optimal long-term financial structure: kwxcc=k.+ka(1-)Weighted Average Cost of Capital A firm normally finds its weighted average cost of capital (WACC) by combining the cost of equity with the cost of debt in proportion to the relative weight of each in the firm’s optimal long-term financial structure: kWACC = keE + kd (1-t)D V V