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The right way for a firm to think about its cost of capital or WACC is: Consider how to raise WACC by replacing lower cost
The "right" way for a firm to think about its cost of capital or WACC is:
Consider how to raise WACC by replacing lower cost debt with higher cost equity.
To look for investment projects which can help reduce the firm's WACC.
To not think about it at all the market determines this.
Consider how to lower WACC by replacing highcost equity with lower cost debt.
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