Glossary

WACC

WACC is an abbreviation for Weighted Average Cost of Capital (see also Weighted Average Cost of Capital). The WACC is a mixed interest rate of equity and debt

Weighted Average Cost of Capital

Weighted Average Cost of Capital (WACC) is a mixed interest rate of equity and debt. It is a weighted average cost of capital that represents the return on total capital. The Weighted Average Cost of Capital is used to calculate the value of a company.

White Knight

A white knight is a bidder whom management has called in to help defend against a hostile takeover.

Working capital

The short-term current assets of a company are called working capital. It is calculated as the difference between the current assets on the asset side of the balance sheet (assets) and the current liabilities (liabilities, provisions) on the liabilities side of the balance sheet. When a company is sold, it is often agreed in the purchase contract how much working capital must be available at the time of the transfer (in order to be able to continue the business normally without having to incur new debt).

Workstream

The term workstream refers to a progressive process of tasks performed by different groups within an organization that are necessary to complete a single project. For example, the workflow for a production facility may include engineering, design, procurement, manufacturing, quality control, and shipping.