I learned that the Federal Reserve has lowered interest rates, which in turn lowers WACC. According to the Board of Governors of the Federal Reserve System, the Federal Reserve lowered the target range for the federal funds rate to 0 to 1/4 percent. By lowering the target range, the Federal Reserve pushes down borrowing costs to help consumers and businesses handle the financial challenges posed by the coronavirus, (Coronavirus Disease 2019 (COVID-19), 2020). Interest Rates were lowered in order to increase capital within the market which will in turn lower companies WACC.

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