WACC
Financial Dictionary — Corporate Finance
Definition
Means Weighted Average Cost of Capital.
Detailed Explanation
WACC means Weighted Average Cost of Capital.
Common Uses
- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.
- Used to evaluate cash flows, financing costs, and capital structure.
Practical Example
- Example: Finance teams use **WACC** when planning funding needs and managing cash and risk.
Why This Term Matters
- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.