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Assumptions using the WACC

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Hi, thanks for the guidance on calculating the WACC, i just need to know in regards to calculating the WACC;

(1) Identify and critically discuss the assumptions that are made in using the weighted average cost of capital for discounted cash flow calculations.

(2) Describe and discuss the practical problems that might be met in an attempt to calculate the weighted average cost of capital for a large international group with a listing on one of the major international stock exchanges.

(3) Describe and discuss the specific problems that might be encountered in estimating a company's weighted average cost of capital when convertible loan stock is used as a long-term source of funding.

Thanks in advance

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Solution Preview

Hi, thanks for the guidance on calculating the WACC, i just need to know in regards to calculating the WACC;

(1) Identify and critically discuss the assumptions that are made in ...

Solution Summary

This discusses the assumptions using the WACC

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