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wallstreetmojo.com
Weighted Average Cost of Capital (WACC) - Formula, Examples
Guide to WACC & its meaning. Here we explain its formula, examples, interpretation, importance, and limitations in detail.
Sep 1, 2023
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𝗠𝗶𝗸𝗲 - Finance|able CEO | 10k+ Trained on Instagram: "WACC (Weighted Average Cost of Capital) is a concept that causes a TON of confusion. It’s usually taught with formulas and a bunch of finance theory, but the underlying point is often missed when this concept is explained. The critical thing to understand here is that any asset is by definition funded by capital (typically debt and equity). And further any capital provider will have a target rate of return based on the risk that they are
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