Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what is wacc? how do company use them for their fi

what is wacc? how do company use them for their finance? for example if wacc=10.50% the risk...

70.2K

Verified Solution

Question

Finance

what is wacc? how do company use them for their finance?

for example if wacc=10.50%

the risk free rate of return is 2.34% snd return on the marketis 7.5% what does this wacc mean to the company ?

Answer & Explanation Solved by verified expert
3.8 Ratings (628 Votes)
WACC is an acronym for weighted average cost of capital of a firm A firms funds are composed of capital from different sources like common stock debt and retained earnings Raising all such capital requires a cost that the company has to bear for example a company needs to pay interest on a certain rate and    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

what is wacc? how do company use them for their finance?for example if wacc=10.50%the risk free rate of return is 2.34% snd return on the marketis 7.5% what does this wacc mean to the company ?

Other questions asked by students

Q

You have found a mutual fund that you would like to invest in that will earn...

Finance
Q

Could anyone explain why a Profitability Index may lead to inaccurate decisions when comparing mutually exclusive...

Finance
Q

Describe how O2 and CO2 are transported in the blood and the effect of exercise on...

Medical Sciences
Q

A beaker with 2.00×102 mL of an acetic acid buffer with a pH of 5.000 is...

Chemistry
Q

Write the balanced equation for the reaction of aqueous Pb (ClO3)2 with aqueous Nal. Include phases What...

Chemistry
Q

You are the director of an admission office. Your job every year is to decide the...

General Management
Q

A bob of mass m suspended by a string of length is given a minimum...

Physics
Q

Write a script that generates a plot of the first 20 squares vs i Use...

Basic Math
Q

Using the linear relationship graphed above estimate the percent of repaired machines if 35 of...

Statistics
Q

a b Consider the two ratios 1 4 and 10 20 Are these two ratios...

Statistics
Q

If a plant is operating at full capacity and receives a one-time opportunity to accept...

Accounting
Q

3. More on the AFN (Additional Funds Needed) equation Fuzzy Button Clothing Company reported sales...

Finance