WACC is the total average cost of capital to company which is calculated by taking into account the weights of all type of capital existed at a particular date in the capital structure of the company...
The weighted average cost of capital is the average cost of a firms financing i.e. both debt and equity financing. Usually debt is much cheaper than equity due to equity investors higher risk...
It is appropriate to use a firm's weighted average cost of capital when valuing a cash flow for the firm. For example, given an investment opportunity where an initial outflow is followed by a series...