WACC

Weighted Average Cost of Capital

A calculation of a company's cost of capital in which every source of capital is weighted in proportion to how much capital it contributes to the company. For example, if 75% of a company's capital comes from stock and 25% comes from debt, measuring the cost of capital weights these accordingly. A high WACC indicates that a company is spending a comparatively large amount of money in order to raise capital, which means that the company may be risky. On the other hand, a low WACC indicates that the company acquires capital cheaply.

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This year, WACC holds on 28 March, inside the Sheraton Hotel and Towers, Ikeja, Lagos with a stakeholders' gathering promising to provide an insightful peep into technology trends in Africa's most populous country as well as the entire ECOWAS sub-region.

Stakeholders Rally Behind WACC, As Event Gets Strong Industry Support

And the assets of these entities will be evaluated at historic values under the WACC regime and no revisions have happened on account of expenses incurred during operations.

Ogra launches new tariff regime for SSGC, SNGPL

The WACC method is a powerful tool of analysis because it allows to determine the market value of a firm by discounting unlevered cash flows at WACC rates.

Valuing Firms Under Default Risk and Bankruptcy Costs: A WACC-Based Approach

Equations (2) and (1) are the Weighted Average Cost of Capital (WACC).

Cost of Capital Estimation for Highway Concessionaires in Chile

The appropriate discount rate is the weighted average cost of capital for the firm (WACC) derived from the market-weighted average of the firm's after-tax debt and equity costs.

Capital Investment Analytical Techniques in Higher Education: A Factor in the Cost Growth?

Unadjusted cost of capital includes a 0.69% weighted cost of debt and a 9.86% weighted cost of equity, for a WACC of 10.56%.

The Potential Impact of Lease Accounting on Equity Valuation: Implications of Cost of Capital and Free Cash Flow Estimates

Impact of ERM on Weighted Average Cost of Capital (WACC)

Economic Value Added Analysis for Enterprise Risk Management

Theory holds that the firm should invest in projects that meet or exceed its weight-average cost of capital (WACC) and reject investments that fail to meet this hurdle.