Q » What is weighted average cost of capital (WACC)?
06 Dec, 2025
A » Weighted Average Cost of Capital (WACC) is a financial metric that calculates a firm's cost of capital, considering the weighted average of its equity and debt financing costs. It represents the minimum return that a company must earn on its asset base to satisfy its investors or creditors. WACC is crucial for financial decision-making, as it influences investment appraisals, valuation models, and determines the hurdle rate for project evaluations.
06 Dec, 2025
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