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The document discusses the weighted average cost of capital (WACC). It defines WACC as the cost of obtaining funds, primarily for investing activities. It then explains the corporate finance decision process and how WACC is used in capital budgeting and valuation. The document provides the formula for calculating WACC and discusses capital structure and how it impacts WACC. It also provides an example calculation and illustration.
The document discusses the weighted average cost of capital (WACC). It defines WACC as the cost of obtaining funds, primarily for investing activities. It then explains the corporate finance…