WACC (Weighted Average Cost of Capital) blends the cost of equity and debt by their weights in capital structure.

Why does WACC matter?

It's the hurdle rate for NPV and IRR decisions.

What is a common mistake with WACC?

Throwing around “WACC” without the simple meaning.

Lesson60 seconds

The blended cost of all the company's funding sources.

Step 1 of 9

WACC (Weighted Average Cost of Capital) blends the cost of and debt by their weights in .

Explanation level

Tap a persona to hear the same idea in a totally different voice.

Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.

Notebook

Your notes

Notes save automatically on this device

Knowledge graph

Done Here Next