The company cost of capital is always at least as large as the weighted-average cost of capital for the same firm.

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The company cost of capital is the minimum rate of return that a company must earn on its investments to satisfy its investors or creditors. It represents the cost of funds that the company raises from external sources. In contrast, the weighted-average cost of capital (WACC) is the average cost of all the capital that a company uses to finance its operations. WACC includes the cost of equity, debt, and other sources of financing, weighted by their proportion in the company's capital structure. Since the company cost of capital represents the minimum required return for the company's capital providers, it is always at least as large as the WACC. Otherwise, the company may not be able to satisfy its investors or creditors, which could result in a reduction in its creditworthiness, a decline in its share price, or even bankruptcy.

The Company Cost of Capital Is Always at Least as Large