Suppose that changes in the economy are making investors more risk-adverse. How would this affect the WACC

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Suppose that changes in the economy are making investors more risk-adverse. How would this affect the WACC (through the cost of debt and the cost of equity)?

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Financial Decision Making For Engineers

ISBN: 9780300192186

1st Edition

Authors: Colin K. Drummond

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Question Posted: Apr 21, 2024 06:00 AM

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Suppose that changes in the economy are making investors more risk-adverse. How would this affect the WACC

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When investors become more riskaverse they typically demand higher returns for taking on risk This i...View the full answer

Financial Decision Making For Engineers

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