WACC Explained: The Weighted Average Cost of Capital
WACC is the blended hurdle rate a company must earn on its investments. Learn the formula, a worked example, and the mistakes that break the number.
WACC is the blended hurdle rate a company must earn on its investments. Learn the formula, a worked example, and the mistakes that break the number.
WACC blends a company’s cost of equity and after-tax cost of debt by their weights in capital structure. The formula, a worked example, and the traps.
WACC blends the cost of equity and after-tax cost of debt into one discount rate. Here is the formula, a worked Apple example, and the pitfalls to avoid.