V = value of firm FCF = free cash flow WACC = weighted average cost of capital rs and rd are costs of stock and debt ws and wd are percentages of the firm that are financed with stock and debt.
V = value of firmFCF = free cash flowWACC = weighted average cost of capitalrs and rd are costs of stock and debtws and wd are percentages of the firm that are financed with stock and debt.