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14,217 Posts.
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16/12/09
16:25
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I know wacc contains an equity and a debt component
but isnt wacc used to capitalise earnings and come up with a value for a stock?
if so what is the difference between wacc and investors expected return?
it could have something to do with wacc being the cost of capital to the company
the cost to the company of capital may be different from what return investors expect
where does wacc actually fit in the scheme of things when valuing a stock?
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