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WACC Explanation and analysis

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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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