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    WACC Explanation and analysis

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    See attached file.

    Provided to you are 2 rounds of separate WACC analysis.

    Please provide an explanation of the WACC results and compare the rounds to each other.

    Are the WACC results a positive outcome?

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    Solution Preview

    Company's WACC= Post tax Cost of Debt* Proportion of debt + Cost of Equity* Proportion of Equity
    It represents the cost of funds raised by the company.

    Analysis of the above case:

    Round 1:
    WACC at Round 1 is ...

    Solution Summary

    Solution discusses WACC Explanation and analysis