Answered By: Peter Z McKay Last Updated: Oct 29, 2014 Views: 2487
Answered By: Peter Z McKay
Last Updated: Oct 29, 2014 Views: 2487
- Bloomberg
Enter: Ticker<EQUITY> WACC <GO>
Definition
- Wighted Average Cost of Capital - WACC
A calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All capital sources - common stock, preferred stock, bonds and any other long-term debt - are included in a WACC calculation.
[Source: Investopedia. See full entry for the formula and an explanation of its significance. See also:
"Investors Need a Good WACC," by Ben McClure, for an article on how investors can us it for valuation.}
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