WACC refers to the Weighted Average Cost of Capital, which refers to the firm's sources of capital that is proportionatly weighted according to their market values.
WACC helps you to showcase the expected returns that both debt and equity holders have. It actually breaks down how a company's capital structure can change the cost of financing that it requires.
It is used in various forms of valuation and corporate finance work. Some may use it as a comparison with the Return on Invested Capital.
WACC refers to the Weighted Average Cost of Capital, which refers to the firm's sources of capital that is proportionatly weighted according to their market values.
WACC helps you to showcase the expected returns that both debt and equity holders have. It actually breaks down how a company's capital structure can change the cost of financing that it requires.
It is used in various forms of valuation and corporate finance work. Some may use it as a comparison with the Return on Invested Capital.