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Q. Calculation of WMCC?
The calculation of WMCC requires several steps to be taken and is subject to the following assumptions: 1) The WMCC is calculated on the basis of market value weights because the new funds are to be raised at the market values.
Cost of Debt (k ) : This describes the rate of interest payable on debt. The cost of debt funds may be calculated when the debt is redeemable or irredeemable. therefore, when deb
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