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Let's say a company whose shares are worth 1 million euros. The expected return on equity is 10%. The return on debt is 4%. The

Let's say a company whose shares are worth 1 million euros. The expected return on equity is 10%. The return on debt is 4%.

The WACC of the sector is 8%. What about the debt of this firm (its amount)?

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To calculate the debt of the firm we can use the weighted average cost of capital WACC formula WACC ... blur-text-image

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