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Imagine that you're a financial analyst advising a renewable energy startup on its WACC calculation. How would you go about estimating the cost of equity,
Imagine that you're a financial analyst advising a renewable energy startup on its WACC calculation. How would you go about estimating the cost of equity, cost of debt, and weights for each financing source? What adjustments would you make to account for the unique risks and opportunities of the renewable energy industry? Would you expect the company's WACC to differ significantly from that of a traditional energy company? Share your insights on how the WACC impacts the startup's investment decisions and long-term financial sustainability, and how it can be optimized to maximize shareholder value while also advancing the company's sustainability goals
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