The article explores how to calculate the average cost of capital for individual shares on the Sarajevo and Banja Luka Stock Exchange. The researchers focus on determining the discount rate that reflects the risk and return on investment for shareholders and creditors. By analyzing the risk associated with cash flows of companies, they aim to find the suitable rate of return that companies must pay to their investors. The study investigates the Weighted Average Cost of Capital (WACC) as a key factor in determining the cost of capital for businesses.