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Weighted Average Cost of Capital - WACC
Weighted Average Cost of Capital - WACC
Image 1 A calculation of a firm's cost of capital by weighting each category of capital proportionately (shareholder's equity, bank loans, bonds, etc.). This is the average expected return on a firm's investments.
Image 2 Remember "a firm's investment's" includes buildings, machinery, and other items that help earn a profit.


Cost of Capital