The weighted average cost of capital (WACC) usually consists of three components. These are... cost of debt (Rd), cost of preferred equity (Rps), and cost of common equity (Re). cost of debt (Rd), costs of preferred equity (Rps), and the company's common stock beta. interest rate on a company's long-term bank loans, the yield to mature on a company's bonds, and growth of the dividend on the company's stock.