The cost of common equity is usually higher than the firm's WACC.

Name: The cost of common equity is usually higher than the firm's WACC.
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The cost of common equity represents the return that investors require for their investment in the firm's common shares. This return usually involves a higher risk premium than the firm's overall cost of capital, which includes both debt and equity. Therefore, the cost of common equity is typically higher than the firm's WACC.

The Cost of Common Equity Is Usually Higher Than the Firm's