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Weighted Average Cost of Capital

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Is it important to know your company's WACC? Why or why not? How might management decisions impact the WACC? To what extent is your company's WACC uncontrollable?

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This solution provides the learner with an understanding of the term Weighted Average Cost of Capital and how management decision may impact the WACC.

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Yes it is important for a company to know its Weighted Average Cost of Capital. A company's assets are financed
through either debt or equity. The Weighted Avererage Cost of Capital is the average of the various ...

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