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Can WACC Ever Be Used to Value an Entire Business

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Can WACC ever be used to value an entire business?


Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, divided by sales revenue, expressed as a percentage. It represents the proportion of sales revenue that exceeds direct costs.

Gross Profit

The financial metric determining the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services.

Retailer

An entity that sells goods or commodities directly to consumers.

Wholesalers

Businesses that buy goods in large quantities from producers to sell them in smaller quantities to retailers or other businesses.

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