Description

The Weighted Average Cost of Capital (WACC) metric is essential for evaluating investment opportunities and determining the cost of financing, serving as a benchmark to optimize capital allocation decisions and maximize shareholder value. It is a vital tool for companies to make informed decisions that drive sustainable growth and enhance shareholder value in today's competitive business environment. Jason Tuzinkewich, COO of Blue Sky Business Resources, joins this segment to discuss the concept of WACC, how it is calculated, factors used in further adjusting WACC, as well as some limitations of its use.

Target Audience

CPAs and other financial professionals seeking education on the topic.

Course Objectives

• Recognize the importance of WACC and why both companies and investors use the metric

• Identify how to calculate WACC in addition to the importance of beta in the WACC calculation

• Recognize the benefits and drawbacks of both high and low WACC

Subjects

• Identify limitations of the WACC calculation