Weighted Average Cost

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REMARKS
Weighted Average Cost of Capital
All capital sources (stock, preferred stock, bonds and any other long-term debt)
This is calculated by multiplying the cost of each capital component by its proportional weight and then summing.
An average that takes into account the proportional relevance of each component, rather than treating each component equally. (This can be calculated in Excel using SUMPRODUCT)
Companies create value for investors by earning a return on the invested capital that is above the cost of that capital
WACC is expressed as a percentage (similar to interest)

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