Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 18 December 2013
Revision date: 20-Jan-2014
Length: 7 pages
Data source: Generalised experience
Abstract
This note provides a conceptual introduction to the weighted-average cost of capital (WACC). It discusses and provides examples of calculating the WACC and its components. It is useful as a parallel reading for cases that require estimation of WACC or as background reading for a class discussion of WACC and its use as a hurdle rate.
About
Abstract
This note provides a conceptual introduction to the weighted-average cost of capital (WACC). It discusses and provides examples of calculating the WACC and its components. It is useful as a parallel reading for cases that require estimation of WACC or as background reading for a class discussion of WACC and its use as a hurdle rate.