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a new financial analyst. ayor manufacturer, and you are reviewing a report recently completed (WACC) in part of the analysis. 2. You are the CFO

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a new financial analyst. ayor manufacturer, and you are reviewing a report recently completed (WACC) in part of the analysis. 2. You are the CFO by a new fina of a I analyst. You is. note that the analyst used the weighted average cost of capital In the report, the analyst had gathered the following inputs: Dividend yield 15 0.03 0.35 0.10 0.02 Forward P/E Trailing P/E Debt/equity ratio Total asset turnover Tax rate Net profit margin Risk-free rate 0.75 5.25 otal assel The analyst used the following formula to estimate the firm's WACC: WACC 0.0775 (weight for debt) (cost of debt) + (weight for equity)'(cost of equity) (0.75) (0.08) +(0.25) (.07) Identify and correct any potential errors in the analyst's WACC calculation

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