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Tuesday, May 31

FIN622 GDB Solution

FIN622 GDB Solution


WACC (when debt-equity ratio is 0.5) = 0.09%

WACC (when debt-equity ratio is 1.0) = 0.08%

WACC (when debt-equity ratio is 2.0) = 0.07%

Trend of WACC with increasing D/E ratio = Decreasing

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