Question:

Would you expect the WACC to be higher for a $1 billion or $100 million market cap company?

Answer hidden.

Answer:

It depends.

WACC is extremely dependent on the capital structure of the companies, so it's impossible to know without knowing that detail.

If you assume that the capital structure for the two companies are the same, then you would expect WACC to be higher for the $100 million market cap company because smaller companies are considered "riskier" than larger companies.

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