Finance Assignment Help With Weighted Average Cost Of Capital

7.3 Weighted average cost of capital

The WACC is defined as the cost of financing the firm’s assets; it can be viewed as opportunity cost. The WACC is given by:

Finance Assignment Help Order Now weighted average cost of capital

One important point to note here is that the relative weightings of debt and equity or other capital components are based on the market values of each component, not on the book values.

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