Two approaches for computing the cost of equity

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What are the two approaches for computing the cost of equity?

• How do you compute the cost of debt and the after-tax cost of debt?

• How do you compute the capital structure weights required for the WACC?

• What is the WACC?

• What happens if we use the WACC for the discount rate for all projects?

• What are two methods that can be used to compute the appropriate discount rate when WACC isn’t appropriate?

• How should we factor flotation costs into our analysis?

Reference no: EM131583417

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