Conversely, a lower WACC signals relatively low financing cost and less risk. "The formula uses the cost of each of the ...
The weighted average cost of capital (WACC) is another formula that investors and companies use to determine whether an investment is worth the cost. WACC takes into consideration the entire ...
Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.