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Weighted Average Cost of Capital (WACC) in Valuation
Understanding and accurately performing a wacc calculation is essential for businesses, investors, and finance professionals who want to assess investment opportunities and business value. The Weighted Average Cost of Capital (WACC) captures the blended cost of raising funds from both equity and debt, factoring in their proportions within a firm’s capital structure. In valuation, WACC is used as a discount rate to evaluate the desirability of projects, price mergers or acquis
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