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    Basic Accounting Concept: Weighted Average Cost of Capital

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    On most basic level, if a firm's WACC is 12 percent, what does this mean?

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    Solution Preview

    It means that the blended of the cost of debt and the cost of equity is 12%. ...

    Solution Summary

    Discussion is in everyday language suitable for the novice about the basic accounting concept of WACC (weighted average cost of capital).

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