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Details all variables used in the WACC formula, and when WACC is most useful? And how WACC used and set up in a corporation?|

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Eeighted average cost of capital is based upon various elements which are used in the capital structure such as debt capital as well as the equity capital.

weighted average cost of capital will also be including the weight of both the capital in the total capital structure and then it will determine the cost of this capital and the taxation elements also.

weighted average cost of capital is most important in finding out the rate at which the project will have to be discounted or it will also be helpful in finding out the hurdle rate of an investment and the cost of these overall capital associated in making rate of return.

Weighted average cost of capital is used in making various kinds of capital budgeting decisions and it is used in various methods like net present value and internal rate of return and it will also be helpful in making investment related decisions in a corporation.

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