The weighted average cost of capital [WACC] is the minimum return that a company must earn to cover its cost of capital. As the capital in a business is derived from a number of sources, each with a different ‘real cost’, the weighted average cost of capital is the overall return for the firm as a whole, and is used to determine the feasibility of investments. In addition, the WACC provides the most appropriate discount rate to use for discounting cash flows. See also Discounted Cash Flow and Net Present Value.
« Back to Glossary IndexWeighted Average Cost of Capital
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.
