Question:

Which of the following represents the correct formula for calculating the weighted average cost of capital $($WACC$)?$

Options:

A$)$ WACC $=($Cost of Debt $+$ Cost of Equity$)/2$

B$)$ WACC $=$ Cost of Debt $+$ Cost of Equity

C$)$ WACC $=($Weight of Debt $*$ Cost of Debt$)+($Weight of Equity $*$ Cost of Equity$)$

D$)$ WACC $=($Weight of Debt $*$ Cost of Equity$)+($Weight of Equity $*$ Cost of Debt$)$