1. High-tech companies typically use a higher WACC because they rely on high-risk funding.
2. Startups often have a low WACC due to their established market presence.
3. Retail companies typically aim for a low WACC to balance competitiveness and financial flexibility.
4. A stable company often has a consistent WACC due to predictable cash flows.
5. A higher debt-to-equity ratio generally lowers WACC for firms.
6. High WACC is preferable for companies looking for aggressive growth strategies.
7. WACC calculations do not consider the risk-free rate.
8. A company's WACC can be influenced by changes in interest rates.
9. Firms with stable cash flows can take on more debt, which often leads to a decrease in their WACC.
10. Understanding WACC is important for making informed investment decisions.