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Weighted Average Cost of Capital ( WACC ) is computed by: a . Taking a simple average of the cost of each source of capital
Weighted Average Cost of Capital WACC is computed by:
a
Taking a simple average of the cost of each source of capital
b
Assigning equal weights to each source of capital
c
Weighting the cost of each source by its proportion in the capital structure
d
Assigning higher weights to the cost of equity than to the cost of debt
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