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

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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 ?

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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

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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

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

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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 ?

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Other questions asked by students

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 ?