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1. How would you describe the basic components of WACC to a group of decision makers in a company? 2. On the most basic

1. How would you describe the basic components of WACC to a group of decision makers in a company? 2. On the most basic level, if a firm's WACC is 12 percent, what does this mean? 3. In calculating the WACC, if you had to use book values for either debt or equity, which would you choose? Why?

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