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1. Discuss the difference between the required rate of return and the cost of capital. 2. Is the cost of equity for a company with

1. Discuss the difference between the required rate of return and the cost of capital.

2. Is the cost of equity for a company with no debt equal to the average weighted cost of capital (WACC)? Please explain.

3. What is the weighted average cost of capital (WACC)? Describe how it is calculated.

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