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Fundamental
Cost of Capital
Weighted Average Cost of Capital (WACC) blends cost of debt and equity
Definition
Cost of capital represents the required rate of return that a company must earn on its investments to satisfy creditors and shareholders. WACC weights the cost of debt (after tax) and cost of equity based on capital structure proportions.
Related Topics
#wacc
#required return
#discount rate
#capital budgeting
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Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
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