what is the weighted average cost of equity wace 
weighted average cost of equity wace is a way to calculate the cost of a company s equity that gives different weight to different types of equities according to their proportion in the corporate structure instead of lumping retained earnings common stock and preferred stock together wace provides a more accurate idea of a company s total cost of equity determining an accurate cost of equity for a firm is integral for the firm to be able to calculate its cost of capital in turn an accurate measure of the cost of capital is essential when a firm is trying to decide if a future project will be profitable or not 