WACC, or weighted average cost of capital, is the average rate a company is expected to pay to finance its assets, calculated by weighting the cost of both its debt and equity. It represents the minimum rate of return a company needs to generate to satisfy its investors and lenders, and it is a key metric for making financial decisions like project analysis and valuation. The formula for WACC is: \(WACC=(E/V\times Re)+(D/V\times Rd\times (1-Tc))\).