Phoenix FIN 370 Weighted Average Cost of Capital
Weighted Average Cost of Capital
Weighted average cost of capital is the overall return the company must have on existing assets to maintain the value of stock (Ross, Westerfield, Jordan, 2016, Chapter 14). It’s also a tool for investors to know how much is required for the company to earn to have a return on their investment. This paper will go through the steps of determining what the weighted average cost of capital is for the company and the advice to the CEO.