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What is the WACC for the debt/equity combinations

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What is the WACC for the debt/equity combinations on the attached.
Construct a pro-forma balance sheet (see attached).
Discuss optimum cost structure.

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The response addresses the queries posted in 450 words.

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See the attached file.

The response addresses the queries posted in 450 words.

//In this paper discussing about use of optimum capital structure, its importance, lowering cost of capital and the best use of debt for the business purpose. There is also discussion on the effect of using debt cost of cost of equity which ultimate increases overall cost of capital in a firm. This paper will provide a great assistance to determine optimum capital structure including debt and equity.//

a. Weighted cost of capital reflects the weight of each source in cost of using such resource for determining overall cost of a firm. WACC is the best cost of capital for making rational decision regarding the selection of ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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