The weighted average cost of capital (WACC) is a financial ratio ... The cost of equity is one component of calculating a company's WACC. The cost of equity is the return that a business pays ...
ROIC is always calculated as a percentage and is ... If ROIC is greater than a firm's weighted average cost of capital (WACC), the most common cost of capital metric, value is being created ...
Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.