Top Definition
weighted average cost of capital
How do you value a firm?

Discount the cash flows using WACC
by the clifton April 28, 2006
weighted average cost of capital, which represents a rate that can be used to evaluate projects that have average company risk.
"I need to know whether Edy should launch this premium Dreamery line of ice cream, and I'll need to discount its projected cash flows using our WACC"

"I looked it up on and found that someone actually has posted the real definition of WACC: weighted average cost of capital!"
-Goizueta Business School professor
by DTT4life May 02, 2007
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