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what is wacc? how do company use them for their finance? for example if wacc=10.50% the risk...

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Finance

what is wacc? how do company use them for their finance?

for example if wacc=10.50%

the risk free rate of return is 2.34% snd return on the marketis 7.5% what does this wacc mean to the company ?

Answer & Explanation Solved by verified expert
3.8 Ratings (628 Votes)
WACC is an acronym for weighted average cost of capital of a firm A firms funds are composed of capital from different sources like common stock debt and retained earnings Raising all such capital requires a cost that the company has to bear for example a company needs to pay interest on a certain rate and    See Answer
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what is wacc? how do company use them for their finance?for example if wacc=10.50%the risk free rate of return is 2.34% snd return on the marketis 7.5% what does this wacc mean to the company ?

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