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Please explain the following identity for the Weighted Average Cost of Capital or WACC. Why is the WACC important for those companies making capital investments?

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Please explain the following identity for the Weighted Average Cost of Capital or WACC. Why is the WACC important for those companies making capital investments? WACC = Rd (1 - Tx)(@ Debt (Debt + Equity) + Re Equity (Debr + Equity) where Re = Rf + Beta (Rm - RS) Edit View Insert Format Tools Table 12pt Paragraph I o Avey ?

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