Topic 2 WACC The weighted average cost of it (WACC) is calculated as the weighted average of cost of component capital, including debt. preferred stock and common equity. In general, debt is less expensive than equity because it is tes risky to the investors. Some managers may intend to increase the sape of debt, therefore increase the weight on debtw). Do you think by increasing the wewton debtw. will reduce the WACC Infinitely? What are the benefits and costs of using a lot of detit