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The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Importantly, it is dictated by the external market and not by management.
The weighted average return on assets, or WARA, is the collective rates of return on the various types of tangible and intangible assets of a company.. The presumption of a WARA is that each class of a company's asset base (such as manufacturing equipment, contracts, software, brand names, etc.) carries its own rate of return, each unique to the asset's underlying operational risk as well as ...
Since return on invested capital is said to measure the ability of a firm to generate a return on its capital, and since WACC is said to measure the minimum expected return demanded by the firm's capital providers, the difference between ROIC and WACC is sometimes referred to as a firm's "excess return", or "economic profit".
Average cost method is a method of accounting which assumes that the cost of inventory is based on the average cost of the goods available for sale during the period. [1]The average cost is computed by dividing the total cost of goods available for sale by the total units available for sale.
A number of different formulae, more than a hundred, have been proposed as means of calculating price indexes.While price index formulae all use price and possibly quantity data, they aggregate these in different ways.
The earliest reference to a similar formula appears to be Armstrong (1985, p. 348), where it is called "adjusted MAPE" and is defined without the absolute values in the denominator.
WACC may refer to: Weighted average cost of capital; World Amateur Chess Championship; World Association for Christian Communication; WACC (AM), a radio station (830 ...
The weighted arithmetic mean is similar to an ordinary arithmetic mean (the most common type of average), except that instead of each of the data points contributing equally to the final average, some data points contribute more than others.