what is average wacc
Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.All sources of capital, including common stock, preferred stock, bonds and any other long-term debt, are included in a WACC calculation. firm's WACC is the overall required return for a firm. Because of this, company directors will often use WACC internally in order to make decisions, like determining the economic feasibility of mergers and other expansionary opportunities.