Asked by kim wilson

why is WACC important to an organization?
b. What impact does WACC have on capital budgeting and structure?

Answers

Answered by drwls
"Weighted Average Cost of Capital is the return a firm must earn on existing assets to keep its stock price constant and satisfy its creditors and owners."

That quote is from
http://en.wikipedia.org/wiki/Weighted_average_cost_of_capital

You may be able to find more help at that site. It is not an area I am familiar with.
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