Weighted Average Cost of Capital (WACC) – Definition

Within Brand Finance literature, WACC refers to an average representing the expected return on all of a company's securities. Each source of capital, such as stocks, bonds, and other debt, is assigned a required rate of return, and then these required rates of return are weighted in proportion to the share each source of capital contributes to the company's capital structure.

Brand Finance have developed a proprietary method for adjusting WACC, called BrandBeta (βrandβeta®).

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