Last Updated
:2025/11/21
weighted-average cost of capital
Noun
Japanese Meaning
企業が使用する各資本のコストを、その資本の割合に応じて平均化し、全体の資本コストを求める計算方法。 / 企業全体の資本コストを、各資金調達手段ごとのコストとその構成比をもとに求める加重平均方式。
( plural )
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A calculation of the overall cost of capital used by an enterprise, made by totalling the cost of each source of capital used multiplied by its proportional share of the total capital used. Abbreviation: WACC.
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weighted-average cost of capital
Before approving the capital budget, the CFO insisted on a fresh calculation of the weighted-average cost of capital to accurately assess whether new projects would create shareholder value.
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Before approving the capital budget, the CFO insisted on a fresh calculation of the weighted-average cost of capital to accurately assess whether new projects would create shareholder value.
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