Weighted average cost of capital
Apply Online Click Here:- Weighted average cost of capital What is WACC Weighted Average Cost of Capital? WACC Weighted Average Cost of Capital Definition: Weighted Average Cost of Capital (WACC) is the average cost to a company of the funds it has invested in the assets of the company. This is composed of a possible combination of debt, preferred shares, common shares and retained earnings. All components of the cost of capital are determined at the current market rates. WACC Weighted Average Cost of Capital Description: When a firm needs to raise capital to buy assets, the capital can be raised from several sources. Investors will by equity shares in the company, investors will buy the company’s bonds, and the company can keep the profits earned through its operations. Any combination of these sources can be used to pay for capital projects. There is a cost to acquire any of these funds, equity investors expect a return on their invested money, and bond holders expect an intere...