Executive & Board / Corporate Finance
Weighted Average Cost of Capital WACC (the hurdle rate)
The blended annual return the company must earn to satisfy all its capital providers, the hurdle every investment and valuation is measured against.
The fork, why two teams get different numbers
Almost every input is an assumption, and reasonable people choose differently.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: CFA Institute (cost of capital / CAPM) · no single authoritative accounting standard (valuation convention)