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Finance / July 19, 2018 / Hanna Hunt

A company's weighted average cost of capital (WACC) is the average interest rate it must pay to finance its assets, growth and working capital. The WACC is also the minimum average rate of return it must earn on its current assets to satisfy its shareholders or owners, its investors, and its creditors.

There are two basic parts to the cost of a car loan the principal and the interest. The principal is the negotiated cost of the vehicle itself. The interest refers to the total amount of the costs accrued over the life of the loan based on the principal amount and the stated interest rate.

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