Weighted Average Cost of Capital (WACC)

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Definition of “Weighted Average Cost of Capital (WACC)” :

The Weighted Average Cost of Capital (WACC) is a financial metric that calculates the average interest rate a company needs to pay all its security holders, including bondholders and stockholders. It represents the firm’s cost of capital from all sources, weighted in accordance with the proportion of each source of finance within the business.

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