Cryptocurrency Q&A
Why use WACC as a discount rate?
Why use WACC as a discount rate?
Michele
Sun Jan 05 2025
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6 answers
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I'm trying to understand why Weighted Average Cost of Capital (WACC) is commonly used as a discount rate. I want to know the rationale behind this practice and how it helps in financial decision-making.
6 answers
Leonardo
Mon Jan 06 2025
WACC stands as a widely adopted discount rate due to its comprehensive nature.
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Enrico
Mon Jan 06 2025
Future cash flows are crucial in a discounted cash Flow (DCF) analysis.
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Stefano
Mon Jan 06 2025
The discount rate used in DCF should ideally correspond with these future cash flows.
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KpopStarletShineBrightness
Mon Jan 06 2025
It encapsulates the inherent risks associated with a company's operational activities.
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Daniele
Mon Jan 06 2025
This metric serves as an indicator of the expected cost of acquiring new capital.
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