If a firm earns the WACC as an average return on its average-risk assets, then:

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If the firm earns the WACC as an average return on its average-risk assets, then all investors will earn their minimum required rate of return. This includes both equity holders and bondholders, as they each have a required rate of return based on the level of risk they are taking. If the firm is earning the WACC, it means that the return it is generating is sufficient to meet the minimum required rate of return for all investors. Therefore, all investors will be satisfied. This also doesn't necessarily mean that the firm is investing only in positive NPV projects, as the WACC is based on the weighted average cost of both debt and equity, and takes into account the cost of financing as well as the returns generated by assets.

If a Firm Earns the WACC as an Average Return