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The unlevered beta plays a central role in the calculation of the Weighted Average Cost of Capital (WACC). A higher unlevered beta indicates that a company is more volatile and riskier than the market average, which can increase the WACC. Conversely, a lower unlevered beta, indicating less risk, can lead to a lower WACC.
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If you also want to compare your investment's performance against other opportunities, the WACC tab is the way to go. The Weighted Average Cost of Capital (WACC) tab represents the average rate a company should pay to finance its assets. At the center of WACC is the "unlevered beta". A higher unlevered beta means that a company is more volatile and riskier than the market average, while a lower unlevered beta means that a company is less risky.
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Are you looking to determine which investment opportunities are best for your company, especially when multiple options are available? How can you tel...
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