WACC is calculated by multiplying the cost of each capital source (debt and equity) by its relevant weight by market value and then adding the products together to determine the total.
Relevance is the concept that a topic is so related to another that it makes sense to consider the second topic when considering the first. The concept of relevance has been studied in various fields such as cognitive science, logic, library, and information science.
But most fundamentally, it is studied in epistemology (theory of knowledge). Different theories of knowledge have different meanings for what is considered relevant, and these basic views affect all other areas as well.
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