The cost of capital - Weighted avarage cost of capital
3 important questions on The cost of capital - Weighted avarage cost of capital
What is the weighted average cost of capital (WACC), Ra?
Reflects the expected average future cost of capital over the long run
What is the market value weights?
Weights that use market values to measure the proportion of each type of capital in the firm's financial structure.
What is the target weights?
Either book or market value weights based on desired capital structure proportions.
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