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WACC question . (write down assumptions and thinking) a) Write an equation for WACC and explain each of its components. b) From the point of
WACC question. (write down assumptions and thinking) a) Write an equation for WACC and explain each of its components. b) From the point of view of a CFO, would you like to have a larger or smaller WACC? c) What are the benefits of having debt in your capital structure (so not just equity)? d) What happens if you have too much debt? What are the negative consequences?
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