Welcome, Guest
 |
Username: Andrew Rating:  Asked to: Talitha Taslim Date Created: 16 Nov 2015 |
| Category | 28 |
| Tag | Financial |
| Question | What is weighted average cost of capital? |
|
Hello Andrew, Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds and any other long-term debt, are included in a WACC calculation. A firm’s WACC increases as the beta and rate of return on equity increase, as an increase in WACC denotes a decrease in valuation and an increase in risk. To calculate WACC, multiply the cost of each capital component by its proportional weight and take the sum of the results. |
List of Gurus
-
Heng Kim 2019-09-24 03:46:59Hi PrettyWoman, The job market is the market in which employers search for
Read more -
Anton Luyten 2019-09-11 10:12:45Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists
Read more -
Chaoxiang Lee 2019-09-07 11:28:32Hi Maria, A caplet is a kind of call option based on interest rates. The
Read more -
Apinya Kamon 2019-09-04 01:56:33Hello ForexGuy, A false market occurs when prices are manipulated and impacted
Read more -
Tom Burke 2019-08-31 08:08:12Hello LuckyWoman, The yearly probability of living is determined by consulting
Read more
-
Heng Kim 2017 - 09 - 15
Hello LuckyWoman, An oversold bounce is a rally in prices that occurs due to
Read more -
Apinya Kamon 2018 - 11 - 02
Hi LuckyMan, The business cycle describes the rise and fall in production
Read more -
Goro Yang 2018 - 02 - 07Hi Fluffy, Quadruple witching refers to an expiration date that includes stock
Read more -
Chaoxiang Lee 2018 - 09 - 13
Hello BobM, A weak currency is one whose worth has decreased in value in
Read more -
Jun Wang 2018 - 03 - 12Hello Peter, A savings rate is the amount of money, expressed as a percentage
Read more
-
Heng Kim 2019 - 09 - 24
Hi PrettyWoman, The job market is the market in which employers search for
Read more -
Anton Luyten 2019 - 09 - 11
Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists
Read more -
Chaoxiang Lee 2019 - 09 - 07
Hi Maria, A caplet is a kind of call option based on interest rates. The
Read more -
Apinya Kamon 2019 - 09 - 04
Hello ForexGuy, A false market occurs when prices are manipulated and impacted
Read more -
Tom Burke 2019 - 08 - 31
Hello LuckyWoman, The yearly probability of living is determined by consulting
Read more