Optimal cost of capital-wacc

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Reference no: EM1337964

1. How would you identify the optimal cost of capital for a organization?

2. What is meant by Weighted Average Cost of Capital (WACC)? Why is WACC a more appropriate discount rate when doing capital budgeting?

3. How does an IPO allow an organization to grow financially? When is a merger or an acquisition, rather than an IPO, a more appropriate way to grow?

Reference no: EM1337964

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