lol..thanx
so
wacc=the discount rate
ok...
so lets say wanted to get $100 interest in the bank and the interest rate was 5%
you would have to have $2000 in the accout
100/.05=2000
as an investor your expected return is 5% or $100 on $2000
or another way
a company has eps of $100
the wacc for the company is 5%
the company is worth = $2000
would you say then that 5% is the discount rate
or would you call it my "expected return"
if so then wacc of capital = investor's expected return
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