Wacc rate formula
The full WACC formula takes into account this "tax shield" effect: WACC = (wD x rD)(1 - T) + (wE x rD). In this formula, "T" is your tax bracket percentage, or the top This figure is represented by a "D" in the WACC formula. 3. Calculate the required rate of return for equity. The specific calculation you use to obtain this figure