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I. Explain the meaning of capital structure, cost of capital, and weighted average cost of capital (WACC). II. Describe how capital structure and cost of

I. Explain the meaning of capital structure, cost of capital, and weighted average cost of capital (WACC).

II. Describe how capital structure and cost of capital affect the way that a company is valued by investors.

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I Understanding the Key Terms 1 Capital Structure A companys capital structure refers to the mix of sources it uses to finance its operations and assets These sources typically include Debt Borrowed m... blur-text-image

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