Financial management
This query is : Resolved
sista phani suryateja
(Querist)
18 September 2014
why wieghts are used in WACC?
Nikhil Kaushik
(Expert)
18 September 2014
because its weighted average. if it is simple average no weights will be used!
the idea is to be give each component of cost its due importance. So the weights are used. a normal average disregards relative importance among different components.
the idea is to be give each component of cost its due importance. So the weights are used. a normal average disregards relative importance among different components.
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