What does the Weighted average cost of capital include？

The Weighted Average Cost of Capital (WACC) includes the cost of debt, cost of equity, and the proportion of debt and equity in a company's capital structure. It takes into account the interest paid on debt, the dividends paid to equity shareholders, and the taxes associated with each. The WACC is used to determine the minimum rate of return that a company must earn on its investments to satisfy its investors' expectations.