Why do we use the WACC in the discounted free cash flow model?

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Fundamentals Of Corporate Finance

ISBN: 9780137852581

6th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Apr 08, 2024 04:00 AM

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Why do we use the WACC in the discounted free cash flow model?

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The Weighted Average Cost of Capital WACC is used in the Discounted Cash Flow DCF model for a specific reason it reflects the cost of capital required ...View the full answer

Fundamentals Of Corporate Finance

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