Compute the weighted average cost of capital (WACC)

There are pre-programmed spreadsheets and software that can easily compute the weighted average cost of capital (WACC). What is most important to a manager is to understand the concept. Explain the relationship between the required return for an investor versus the cost of capital for a corporation. Provide a fictional applied example that reflects your understanding of the answer. Be prepared to comment on the responses of your classmates.

 

 

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