Interested to Buy Any Domain ? << Click Here >> for more details...
what is wacc and how it is use?
- 3 Answers
- 7147 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / dinesh
WACC stands for weighted average cost of capital WACC is the average of the costs of sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / swarnlata
wacc means Weighted Average Cost of Capital.It is used by
using a formula-
WACC = E/(D+E)*Re + D/(D+E)*Rd*(1-t)
E = amount of equity the company has
D = amount of debt the company has
Re = cost of equity
Rd = cost of debt
t = corporate tax rate
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / neerajkumar.che
Hello Freinds,
As WACC standfor weighted Average cost of capital.As you
know capital structure of the company is mix of long term
debt and equity and company tries to maximize the
shareholders wealth by adopting the proper mix of debt and
equity.So WACC is calculates based on the cost of the
capital of eaach component multiplied by its weight.It is
the minimum cost of capital to the company which discounted
the future inflow againts the inital outflow to have
maximum value to company.
| Is This Answer Correct ? | 0 Yes | 1 No |
what are the benefits of working as an actuary?
what is bailout fund and what are the main drawbacks of bailout funds? what is the role of bailout fund in an economy and what are the impact of bailout fund on market , economy , the bailout provider and the bailout reciever?
What do you know about Demonetization Bill introduced in Lok Sabha?
discuss on limited liability.
How is cash flow statement different from a funds flow statement?
How is SLR determined? What is the Need of SLR?
What is the formula for the Capital Asset Pricing Model?
who manages all the IPO?
Explain the weak-form, semi-strong from and strong-from of efficiency?
What do you understand by foreign draft?
What id FDI and FII?
Types of Lease?
17 Answers HDFC, Mani Associates,
-
Business Administration (517) - Marketing Sales (1279)
- Banking Finance (3209)
- Human Resources (747)
- Personnel Management (68)
- Hotel Management (29)
- Industrial Management (113)
- Infrastructure Management (14)
- IT Management (97)
- Supply Chain Management (16)
- Operations Management (39)
- Funding (79)
- Insurance (494)
- Waste Management (1)
- Labor Management (48)
- Non Technical (73)
- Business Management AllOther (546)
