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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). Riskier industries, may have a higher Cost of Capital.

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Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). Riskier industries, may have a higher Cost of Capital.

article thumbnail

Weighted Average Cost of Capital Explained – Formula and Meaning

Valutico

A Short Summary The Weighted Average Cost of Capital (WACC) is an important tool for business valuation. It is a metric used to calculate the Cost of Capital for a company based on its specific financing mix (debt, equity and/or preference shares). Riskier industries, may have a higher Cost of Capital.