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Understanding WACC
Brealey and Myers (2003) mentioned that the weighted average cost of capital (WACC) is the overall cost of capital of a company those have utilised the aggregate cost of capital to the company is noticeably pedestal on the average cost of each tools that the company uses to lift up capital from the financial market. To calculate WACC
it is possible to demonstrate how much interest both the firms are paying for every dollar they finances and by doing so the financial managers of the firms would be able to investigate capital budget analysis
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