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WACC Reflects, on average the firms cost of long -term financing sources that fund the firm' s long -term assets cind Recognises the mix of different financing Is the average of the rates of return that providers of capital require, with each source's contribution being weighted according to the proportion of capital it provided Is found by weighting the cost of each specific type of capital by its proportion in the firms capital structureWACC • Reflects, on average, the firm’s cost of long-term financing. • Recognises the mix of different financing sources that fund the firm’s long-term assets. • Is the average of the rates of return that providers of capital require, with each source’s contribution being weighted according to the proportion of capital it provided. • Is found by weighting the cost of each specific type of capital by its proportion in the firm’s capital structure
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