WACC

Sounds like a teen rebellion anthem, right? Well, it's not. WACC stands for Weighted Average Cost of Capital. 

Huh? 

Well, companies wanting to make a big purchase often have to find cash from multiple sources, each of which might charge different rent on that principal based on things like collection seniority in the case of bankruptcy, duration; i.e., how far away until the bond comes due and the principal pays off and a bunch of other things. So the weighted part takes into account the amount of capital being borrowed and then the adjusted costs of renting that money are averaged. Hence the A in WACC.