Home  | Term of the Day | |||
| WACC Weighted Average Cost of Capital. An average representing the expected return on all of a company's securities. Each source of capital, such as stocks, bonds, and other debt, is assigned a required rate of return, and then these required rates of return are weighted in proportion to the share each source of capital contributes to the company's capital structure. The resulting rate is what the | ||||
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| Usage Example Before starting a new project or initiative most companies calculate the WACC to see if the project is worthwhile and will be profitable. | ||||
Term of the Day
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Join date : 2013-01-12
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