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RE: Understanding Cost of Capital and WACC - TradFi on HIVE

in TradFi • 16 days ago

Thank you for explaining WACC. So what I can infer is that a high WACC is not good for the company as it may have expensive debt. And whereas a low percent WACC is good resulting into cheaper borrowing and stable business.. Cheers

16 days ago in TradFi by
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         16 days ago 

        Yep that's right! Cheaper WACC is better for the company but then investors expect a lower return as well. In theory anyways!

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