The Weighted Average Cost of Capital Works Really Well for Internal Investments

The weighted average cost of capital works really well for internal investments that businesses make. But when you're talking about a stock market investment, it doesn't really make any sense to do it that way. It makes much more sense to assess it as if the cash floes are coming only to you as if you're buying the whole business. And what return would you want to make? That's the rate at which you should be discounting those cash flows. We still need more questions to come in every single week. So head over to shareside dot com and leave them there.