Debt Financing Definition Weighted Average Cost of Capital 
Valutico
FEBRUARY 27, 2024
In DCF analysis, the Weighted Average Cost of Capital (WACC), representing the average return required by all stakeholders, is commonly used as the discount rate. It is usually expressed as the interest rate on debt. It represents the cost a company incurs to access funds through debt financing.
FE International
DECEMBER 31, 2021
One of the most thorough ways to value a business is through a DCF analysis , which involves forecasting the free cash flows of the acquisition target and discounting them with a predetermined discount rate, usually the weighted average cost of capital ( WACC ) for the business in question. Debt-financed investors.
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