The wacc when the capital structure of firm changes

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Reference no: EM132065878

1) How should the weighted-average cost of capital be applied to projects that are not average-risk projects?

a) What happens to the WACC when the capital structure of a firm changes?

b) Why do firms compute the weighted-average cost of capital if they generally have projects that vary greatly in their degree of risk.

Reference no: EM132065878

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