WFinance glossary

WACC (Weighted Average Cost of Capital)

Quick definition

The average cost of equity and debt.

Overview

WACC is the weighted average cost of the financial resources (equity and debt) a company uses to fund its activities, and is important for assessing the profitability of projects.

Common uses

Investment analysis
Business valuation
Financial planning

Examples of use in small businesses

Financing decisions
Calculating the cost of capital
Evaluating expansion projects

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Overview

Common uses

Examples of use in small businesses

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