Business Studies, asked by kishita461320, 2 months ago


5. What is meant by weighted average cost of capital? Explain this method with suitable illustration.​

Answers

Answered by freefire8725
0

Answer:

The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.

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Answered by palmoumita12041985
0

Answer:

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Importantly, it is dictated by the external market and not by management.

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