Assertion: capital | /r/HasProperty | wacc
Facets:
Source sentences:
text: A business may assess its weighted average cost of capital (WACC), which weights each cost of capital funding, to calculate a company’s average cost of capital.
text: In other words, if there's an increase in the debt ratio, capital structure increases, and the weighted average cost of capital (WACC) decreases, which results in higher firm value.﻿﻿
text: Comparing a company's return on invested capital with its weighted average cost of capital (WACC) reveals whether invested capital is being used effectively.
text: If ROIC is greater than a firm's weighted average cost of capital (WACC), the most common cost of capital metric, value is being created and these firms will trade at a premium.
text: Once cost of debt and cost of equity have been determined, their blend, the weighted average cost of capital (WACC), can be calculated.
text: The weighted cost of capital (WACC) is used in finance to measure a firm's cost of capital.
text: Comparing a company's return on invested capital with its weighted average cost of capital (WACC) reveals whether invested capital is being used effectively.
text: If ROIC is greater than a firm's weighted average cost of capital (WACC), the most common cost of capital metric, value is being created and these firms will trade at a premium.
text: Analysts and investors use weighted average cost of capital (WACC) to assess an investor’s returns on an investment in a company.
text: While many financial computations use market value instead of book value (for instance, calculating debt-to-equity ratios or calculating the weights for the weighted average cost of capital (WACC)), ROIC uses book values of the invested capital as the denominator.
text: Minimizing the weighted average cost of capital (WACC) is one way to optimize for the lowest cost mix of financing.
text: The optimal capital structure is estimated by calculating the mix of debt and equity that minimizes the weighted average cost of capital (WACC) of a company while maximizing its market value.