Provide a response to the following information:

G is the anticipated growth rate.Because the growth rate is an estimated component it may not always be exact.However, the person calculating the WACC needs to make sure the estimated growth rate is close in comparison to the actual growth rate, or their valuation will be off.If the growth rate is estimated at 4% as opposed to 8%, the growth has been underestimated.This will result in an undervaluation of the WACC.

The WACC is used to determine if a certain project or company's return on investment is going to surpass the cost of capital it takes to invest in the project.It can also show investors what their return will be if the invest in a project or company.If the WACC has been undervalued, they could potentially run out of capital to fund their project.The return on the investment will not cover the capital needed to fund the project, and the company will not be left in good standing.