What is the weighted average cost of capital and it's purpose?

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19-01-2018
Business

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What is the weighted average cost of capital and it's purpose?

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andriansp andriansp · Answer 1 · 2018-01-19T00:10:52+01:00

andriansp andriansp

19-01-2018

The weighted average cost of capital is the rate that a company is expected to pay on average to finance their operation/assets
The purpose of this financial measurement would be for the budgeting process. It can be used to estimate future cash outflow that the company made for the operating period.

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