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If you were in charge of determining WACC in your company, which of these methods would you avoid?: Estimate g using historical dividend growth rates
If you were in charge of determining WACC in your company, which of these methods would you avoid?:
Estimate g using historical dividend growth rates or analysts estimates of growth rate
Use the coupon rate of the last bond series issued by the firm as the cost of debt
Use either the dividend growth model approach or the CAPM approach to determine the cost of equity
Use the interest rate the firm must pay on new borrowing as the cost of debt
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