10/15/2025
This video introduces the concept of WACC — the Weighted Average Cost of Capital — in a simple, easy‑to‑understand way. You’ll learn why companies need capital, the different sources they use (equity, preferred stock, and debt), and how each source comes with its own cost. We’ll then show how these costs are blended together using weights based on their share of total financing, creating one single hurdle rate that guides investment decisions. By the end, you’ll understand not just the formula, but the intuition behind WACC — and why it’s the key benchmark for evaluating whether a project adds value.
This video introduces the concept of WACC — the Weighted Average Cost of Capital — in a simple, easy‑to‑understand way. You’ll learn why companies need capit...
