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Explain the concept of WACC. What does it mean to the firm? How is it used by the firm? How should the capital structure weights

Explain the concept of WACC. What does it mean to the firm? How is it used by the firm? How should the capital structure weights used to calculate the WACC be determined? Should the WACC be used to evaluate all of a firms potential projects, even if they vary in risk? If a firms estimated WACC is 10%, what might be a reasonable cost of capital for average-, high-, and low-risk projects?

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