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Use McDonald, calculate the WACC for your DJIA company. Upload an Excel spreadsheet showing your work. You can use the following formula for this calculation:
- Use McDonald,
calculate the WACC for your DJIA company. Upload an Excel spreadsheet showing your work. You can use the following formula for this calculation:
WACC = (Equity/Total Capital) x Cost of Equity + (Debt/Total Capital) x Cost of Debt x (1 - Tax Rate)
- Interpret the WACC. For your responses, you may comment on the usefulness of WACC. For example, considerthe use of WACC in the calculation of EVA.
- Describe the implications of WACC in relation to the goal ofshareholder wealthmaximization. Include a brief discussion of how internal and external factors can impact the organization's WACC.
- What are the other uses of WACC?
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