Weighted Average Cost of Capital

Views Updated: Dec 15, 2025

Key Facts

Abbreviation
WACC
Pronunciation
/ˈweɪtɪd ˈævərɪʤ kɔst əv ˈkæpɪtəl/
Category
Business
Related Field
Accounting

Examples in Context

  1. WACC Weighted average cost of capital : The rate of return that must be earned to satisfy all investor expectations.
  2. Short time financial leverage has positive correlation with equity cost and weighted average cost of capital;
  3. By analyzing, we know the coefficient p of Capital Assets Pricing Model reflects the risk and Weighted Average Cost of Capital(WACC) can resolve the financing.
  4. Based on it, and combined the weighted average cost of capital method and monte carlo simulation, this paper presents a risk NPV method.
  5. A simple example reveals that the existing weighted average cost of capital ( WACC ) formula for valuation conflicts with the principle of value additivity.

Other meanings of WACC