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Weighted average cost includes all types of finances company uses to finance it's business like equity finance, debt finance, loan or debenture etc.
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∙ 9y ago
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What are the limitations of the weighted average cost of capital?
One limitation of the weighted average cost of capital is that a firm may possibly end up having a negative Net Present value. This occurs if the weighted average cost of capital gives a discount rate that is too low.
Who sets weighted average cost of capital?
It must be the managers
A firm's cost of finaning in an overall sense is equal to its?
Weighted average cost of capital.
Weighted-average contribution margin?
Weighted average contribution margin is the weighted amount of contribution margin generated by all units of different mix of products to recover the total fixed cost of company.
What is the definition of 'weighted mean'?
"Weighted mean" is the average calculated by taking into account not only the frequencies of the variables but also some other factors such as their variance.
Which best describes the definition of the atomic mass of an element?
it is the weighted average of the masses of an element's isotopes.
Which best describes the definition for the atomic mass of an element?
it is the weighted average of the masses of an element's isotopes.
Which best describes the definition for the atomic mass of the element?
it is the weighted average of the masses of an element's isotopes.
How are the weights determined to arrive at the optimal weighted average cost of capital?
estimates
Why is Weighted Average Cost of Capital important to an organization?
imoportant of capital cost to a hotel imoportant of capital cost to a hotel
Definition of weighted average?
A weighted average is the average of a particular category and then weighted to whichever percentage it represents. Ex. Your course grade consists of 50% tests and 50% homework. You take two tests. You would take the average of the two tests and then weigh them against the total, which is 50%. (G1+G2)/2 x 50%
Inventory valuation method that tends to smooth out erratic changes in cost?
Weighted Average
