Question
The Weighted Average Cost of Capital (WACC) is built up from multiple inputs. In the current pandemic, there will likely be different directional changes across
The Weighted Average Cost of Capital (WACC) is built up from multiple inputs. In the current pandemic, there will likely be different directional changes across those inputs. Consider the table below table and assess how each of the individual inputs could affect the WACC. Express you answer by indicating whether the change would increase, decrease, or have no change on the WACC? Conclude your assessment with a discussion regarding your opinion of how the WACC for firms may change if COVID-19 remains a health and business threat for a duration greater than 10 years.
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