Term of the Day: Weighted Average Cost Of Capital - WACC

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	INVESTOPEDIA Term Of The Day November 16, 2015 Weighted Average Cost Of Capital - WACC 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. A firm's WACC increases as the beta and rate of return on equity increase, as an increase in WACC denotes a decrease in valuation and an increase in risk. Breaking It Down: Cost of equity (Re) can be a bit tricky to calculate, since share capital does not technically have... Read More Related to "Weighted Average Cost Of Capital - WACC" Weighted Average Cost Of Capital (WACC) - Video Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment... Read More Working Capital Works Cash is the lifeline of a company. If this lifeline deteriorates, so does the company's ability to fund operations... Read More Human Capital, An Important Asset For Portfolio Diversification Based on CFA L3 2014 curriculum, an investor's total wealth consists of two parts: financial capital and... Read More Recently Added Definitions Yield To Maturity (YTM) The total return anticipated on a bond if the bond is held until the end of its lifetime. Yield to maturity is considered a... Read More Substitute A "substitute" or "substitute good" in economics and consumer theory is a product or service that a consumer... Read More Related Definitions Return On Capital Employed (ROCE) Replacement Chain Method Equivalent Annual Annuity Approach - EAA Capital Growth Working Capital Past Terms of the Day Implied Volatility - IV Gross Domestic Product - GDP Debt-Service Coverage Ratio (DSCR) Cost, Insurance and Freight - CIF Brazil, Russia, India And China - BRIC You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Manage Subscriptions Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: