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Weighted Average Cost of Capital

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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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 ...

Solution Summary

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