Weighted average cost of capital (WACC)

{
  "id": "MLC-T-INS-003526",
  "term": "Weighted average cost of capital (WACC)",
  "field": "Insurance and risk management",
  "definition": "The average rate of return a company expects to pay to all its security holders, including debt and equity, to finance its assets. It is calculated by weighting the cost of each capital component by its proportional share in the company's capital structure. WACC is used as a discount rate to evaluate the profitability of potential projects and investments.",
  "abbreviation": "WACC",
  "url": "https://mlchart.com/terminology/insurance/weighted-average-cost-of-capital-wacc/"
}