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How is risk incorporated to determine the weighted average cost of capital (WACC) for a company? Which of the cost components that go into WACC

  • How is risk incorporated to determine the weighted average cost of capital (WACC) for a company?
  • Which of the cost components that go into WACC is the most expensive form of financing to a firm, and which is the cheapest? Explain why, and indicate ways companies can lower their WACC.

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