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Cost of Capital (WACC)

Definition

The weighted average cost of capital, representing the blended rate of return a company must earn on its assets to satisfy both debt holders and equity investors. WACC is used as the discount rate in DCF valuations and as a hurdle rate for investment decisions.

Related Terms

Cap Table (Capitalisation Table) Capital Deepening Capital Expenditure (CapEx) Capital Intensity Ratio Capitalisation of Intangibles

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