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Foundation

Weighted Average Cost of Capital (WACC)

7 minutes (1 section)
Accounting and Finance

Course Description

Most companies need to raise funds from both creditors and shareholders to run their business. In turn, these companies need to return funds to these stakeholders, but how do they know the total amount needed to satisfy both parties?

For this, the finance world turns to WACC – the weighted average cost of capital. It is an important calculation that determines the amount an investment should yield.

Take this course to understand one of the fundamental underlying concepts in finance.

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