answersLogoWhite

0

A higher weighted average cost of capital (WACC) is generally not beneficial for a company's financial performance. This is because a higher WACC means that the company has to pay more to finance its operations and investments, which can reduce profitability and hinder growth opportunities. Lowering the WACC can lead to improved financial performance by reducing the cost of capital and increasing the company's overall value.

User Avatar

AnswerBot

5mo ago

What else can I help you with?

Continue Learning about Economics

Is a lower weighted average cost of capital (WACC) better for a company's financial performance?

Yes, a lower weighted average cost of capital (WACC) is generally better for a company's financial performance as it indicates that the company can raise funds at a lower cost, which can lead to higher profitability and increased value for shareholders.


Is a higher or lower WACC better for a company's financial performance?

A lower Weighted Average Cost of Capital (WACC) is generally better for a company's financial performance as it indicates lower costs of financing and potentially higher profitability.


What is total weighted price?

Total weighted price refers to the calculated price of a basket of goods or assets, where each item's price is multiplied by its respective weight or importance in the overall portfolio or analysis. This method is often used in financial contexts to assess the average price of a collection of investments, considering the varying amounts invested in each. By using weighted prices, investors can better understand the overall performance and value of their holdings.


Name of top 30 companies listed in bse?

BSE Sensex is the weighted average of the price movement of the 30 largest company's that are listed in the Bombay Stock Exchange. This list of company's may change from time to time and the Exchange will always release the news of replacement of any company in the Sensex to the public beforehand.Some of the major companys in this index are:State Bank of IndiaICICI BankHDFC BankReliance IndustriesTATA MotorsetcThe full list of the 30 company's that are part of the Sensex Index can be found in the Related Links section


How can a company determine its weighted average cost of capital (WACC)?

A company can determine its weighted average cost of capital (WACC) by calculating the weighted average of the cost of equity and the cost of debt, taking into account the proportion of each in the company's capital structure. This calculation helps the company understand the overall cost of financing its operations and investments.

Related Questions

Is a lower weighted average cost of capital (WACC) better for a company's financial performance?

Yes, a lower weighted average cost of capital (WACC) is generally better for a company's financial performance as it indicates that the company can raise funds at a lower cost, which can lead to higher profitability and increased value for shareholders.


Is a higher or lower WACC better for a company's financial performance?

A lower Weighted Average Cost of Capital (WACC) is generally better for a company's financial performance as it indicates lower costs of financing and potentially higher profitability.


Is weighted equipment dangerous to use by yourself?

Weighted equipment can be dangerous if used on your own when you do not know the proper form and method to using it. It may be beneficial to watch videos before using any type of weighted equipment to ensure you do not injure your back.


The weighted mean is a special case for?

The weighted mean is simply the arithmetic mean; however, certain value that occur several times are taken into account. See an example http://financial-dictionary.thefreedictionary.com/weighted+average


How can a weighted vest enhance my climbing performance?

A weighted vest can enhance climbing performance by increasing resistance during training, improving strength, endurance, and overall fitness. This can help climbers build muscle, improve balance, and increase power, leading to better performance on the wall.


How do you calculate return on RWA?

Return on Risk-Weighted Assets (RoRWA) is calculated by dividing the net income of a financial institution by its risk-weighted assets. The formula is: RoRWA = Net Income / Risk-Weighted Assets. This metric helps assess how effectively a bank generates profit relative to the risk it takes on through its assets, providing insights into its capital efficiency and risk management. A higher RoRWA indicates better performance relative to the risks assumed.


How can I effectively perform weighted pull ups without using a belt?

To effectively perform weighted pull-ups without using a belt, you can hold a dumbbell between your feet or use a weighted vest to add resistance. This will help strengthen your muscles and improve your pull-up performance.


How effective is using a weighted vest for cycling in improving performance and strength?

Using a weighted vest for cycling can be effective in improving performance and strength by adding resistance to the workout, which can help increase muscle engagement and cardiovascular endurance. However, it is important to use the vest properly and gradually increase the weight to avoid injury and overtraining.


How is stock return calculated?

There are a variety of performance metrics that can be used to calculate stock return. They tend to fall under one of the following classifications: * Time Weighted Return (TWR) aka Time Weighted Rate of Return * Money Weighted Return (MWR), aka Money Weighted Rate of Return The following link gives a summary of the pros and cons of using Money and Time Weighted metrics. http:/www.timetotrade.eu/wiki/index.php/Time_Weighted_Return_versus_Money_Weighted_Return_Performance_Metrics Best wishes timetotrade


5421 is example for weighted or non weighted code?

weighted


Which are listed in BSE?

BSE Sensex is the weighted average of the price movement of the 30 largest company's that are listed in the Bombay Stock Exchange. This list of company's may change from time to time and the Exchange will always release the news of replacement of any company in the Sensex to the public beforehand.Over 2000 companys are listed in the BSE. Some of the top companys are:ICICI BankHDFC BankReliance IndustriesAirteletcA full list of the 30 companys that form the BSE Sensex index can be found in the related links section


What is the homophone of weighted?

Waited is the homophone of weighted.