weighted average cost of capital

简明释义

加权平均的资本成本

英英释义

例句

1.The company calculated its weighted average cost of capital 加权平均资本成本 to determine the feasibility of new projects.

公司计算了其加权平均资本成本以确定新项目的可行性。

2.Investors often look at the weighted average cost of capital 加权平均资本成本 to assess the risk of their investments.

投资者通常查看加权平均资本成本来评估他们投资的风险。

3.The finance team presented an analysis of the weighted average cost of capital 加权平均资本成本 during the board meeting.

财务团队在董事会上展示了关于加权平均资本成本的分析。

4.To maximize shareholder value, the firm aims to reduce its weighted average cost of capital 加权平均资本成本.

为了最大化股东价值，公司旨在降低其加权平均资本成本。

5.A lower weighted average cost of capital 加权平均资本成本 indicates a more favorable investment environment.

较低的加权平均资本成本表明投资环境更为有利。

作文

Understanding financial concepts is crucial for both individuals and businesses aiming to make informed decisions. One such concept is the weighted average cost of capital, often abbreviated as WACC. This term refers to the average rate of return a company is expected to pay its security holders to finance its assets. Essentially, it represents the opportunity cost of investing in a business, considering the risk associated with it. To break it down further, the weighted average cost of capital takes into account the proportion of equity and debt in a company's capital structure. Equity typically comes from shareholders, while debt is borrowed from lenders. Each source of capital has its own cost: the cost of equity is the return expected by shareholders, and the cost of debt is the interest rate paid to creditors. The 'weighted' aspect means that these costs are adjusted based on their respective proportions in the overall capital structure. For instance, if a company finances 70% of its operations through equity and 30% through debt, the WACC calculation will assign a higher weight to the cost of equity due to its larger share. This is significant because a lower weighted average cost of capital indicates that a company can fund its operations more cheaply, which can lead to higher profitability and potentially increased stock value.Investors often use WACC as a benchmark to evaluate investment opportunities. If the expected return on an investment exceeds the weighted average cost of capital, it suggests that the investment could generate value for shareholders. Conversely, if the return is less than the WACC, it may indicate that the investment is not worthwhile. This makes WACC a vital tool in capital budgeting and financial modeling.Moreover, understanding the weighted average cost of capital helps companies determine their optimal capital structure. By analyzing their WACC, businesses can assess whether they should pursue more debt or equity financing. A company with a high WACC may seek to reduce its debt levels to lower its overall cost of capital, while a company with a low WACC might consider taking on more debt to leverage its growth potential.In summary, the weighted average cost of capital is an essential financial metric that provides insights into the cost of financing for a business. It incorporates the risks associated with equity and debt, allowing investors and managers to make informed decisions regarding investments and capital structure. By comprehensively understanding WACC, stakeholders can better navigate the complexities of financial management and investment strategies, ultimately leading to more successful outcomes for the company and its investors.

理解金融概念对个人和企业做出明智决策至关重要。其中一个概念是加权平均资本成本，通常缩写为WACC。这个术语指的是公司预期支付给其证券持有者以融资其资产的平均回报率。本质上，它代表了投资于一家企业的机会成本，考虑了与之相关的风险。进一步分解一下，加权平均资本成本考虑了公司资本结构中股权和债务的比例。股权通常来自股东，而债务则是从贷方借来的。每种资本来源都有其自身的成本：股权成本是股东预期的回报，而债务成本是支付给债权人的利率。“加权”方面意味着这些成本根据它们在整体资本结构中的相应比例进行调整。例如，如果一家公司通过股权融资其运营的70%，通过债务融资30%，那么WACC计算将由于股权占比更大而赋予股权成本更高的权重。这一点非常重要，因为较低的加权平均资本成本表明一家公司可以更便宜地为其运营提供资金，这可能导致更高的盈利能力和潜在的股票价值增加。投资者通常使用WACC作为评估投资机会的基准。如果投资的预期回报超过加权平均资本成本，这表明该投资可能为股东创造价值。相反，如果回报低于WACC，则可能表明该投资不值得。这使得WACC成为资本预算和财务建模中的重要工具。此外，理解加权平均资本成本有助于公司确定其最佳资本结构。通过分析其WACC，企业可以评估是否应该追求更多的债务或股权融资。WACC较高的公司可能会寻求降低其债务水平以降低整体资本成本，而WACC较低的公司可能会考虑承担更多债务以利用其增长潜力。总之，加权平均资本成本是一个重要的财务指标，为企业融资成本提供了洞察。它结合了与股权和债务相关的风险，使投资者和管理者能够就投资和资本结构做出明智的决策。通过全面理解WACC，利益相关者可以更好地应对财务管理和投资策略的复杂性，最终为公司及其投资者带来更成功的结果。