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    Finance: WACC, capital budgeting etc

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    ~Why is Weighted Average Cost of Capital (WACC) important to an organization?
    ~What impact does WACC have on capital budgeting and structure?
    ~What are the risks and uncertainty related to capital budgeting?

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    QUESTIONS
    1. Why is Weighted Average Cost of Capital (WACC) important to an organization?
    2. What impact does WACC have on capital budgeting and structure?
    3. What are the risks and uncertainty related to capital budgeting?

    TUTORIAL
    1.
    The Weighted Average cost of capital (WACC) represents the total cost of all forms of financing sourced by a company. The WACC is the cost borne by the company because of it obtaining ...

    Solution Summary

    The problems deal with issues in finance WACC, capital budgeting, etc. The impact WACC has on capital budgeting and structure is determined.

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