See how we rate investing products to write unbiased product reviews. The weighted average cost of capital (WACC) is a financial ratio that measures a company's financing costs. It weighs equity ...

The weighted average cost of capital (WACC) is a measure of the average rate of return that a company is expected to pay to its investors to finance its assets. The WACC takes into account the ...

Because many projects are funded in multiple ways, companies will often calculate a weighted average cost of capital (WACC) in budgeting for a potential new initiative. The discount rate is the ...

The cost of capital should correctly balance the cost of debt and the cost of equity. This is also known as the weighted average cost of capital or WACC. The ratio between debt and equity should ...

Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.

A related question is their thinking on WACCs (weighted average cost of capital) and the valuation models they use to evaluate capex investments. The impression I got was that academics ...