Weighted average cost of capital is defined as the average rate of return shareholders and lenders expect to earn on the money they invested in their business.

Question

Quizplus · Accepted Answer

The Weighted Average Cost of Capital (WACC) represents the average rate of return that a company is expected to pay its security holders to finance its assets. It is a weighted sum of the cost of equity and the cost of debt, reflecting the expected returns demanded by shareholders and lenders.

Weighted Average Cost of Capital Is Defined as the Average