What is considered to be a high WACC and why? WACC

Which WACC is high and why?

WACC

CONTENT

A company’s average weighted capital expense is the total cost that it anticipates having to pay in order to finance its assets. (Segal 2020). The price of equity is added to the costs of borrowing. WACC indicates that a company is more likely to pay higher prices for the capital it has invested. In order to compensate for the higher risk, investors will often seek a higher return on investments that have increased in risk. Low WACC means that investors are not paying as much to acquire stock or debt. Businesses with low WACC tend to be more successful, larger, and therefore safer to invest. If the business has a long-term record, it can get capital at a lower cost. WACC is the amount of money required to generate an additional dollar in funding. WACC = cost of additional funding. For example, $1 is equal to $0.05. (Segal, 2020). You might think that $0.05 is the interest payment on debt. Or the dividend, capital return required by private investors. Cont…

Continue to order Get a quote

Calculate the price of your order

Type of paper needed:

Pages:

550 words

Academic level:

We'll send you the first draft for approval by September 11, 2018 at 10:52 AM

Total price:

$26

The price is based on these factors:

Academic level

Number of pages

Urgency

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.