Question

1. What does calculating the weighted average cost of capital (WACC) tell you about a company's financial strategy including the level of risk involved in the business?

2. How could the company use WACC calculations in determining future investment?

Answer 1

Check this site.

http://www.investopedia.com/terms/w/wacc.asp

Answer 2

Thank you Ms. Sue.

Answer 3

You're welcome, JM.