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.

Potential COVID-19 effects	WACC input	Potential change in WACC
Increased credit and liquidity risk of entity	Cost of debt
Volatility of entitys equity compared to market	Beta
Cash flow forecasting and	Specific risk premium
Risk appetite for market participants	Market risk premium
Government bond yields	Risk-free rate
Level of borrowing	Capital structure