WACC is the overall rate of return a firm must earn on its assets to maintain:...
WACC is the overall rate of return a firm must earn on its assets to maintain:
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Homework Answers
WACC = (Cost of Equity * Weight of Equity) + (Cost of Debt after tax * Weight of Debt) + (Cost of Preferred Stock * Cost of Preferred Stock)
It includes cost of Equity, Debt and Preferred Cost which a co need to earn to satisfy the Debt, Equity and preferred Stockholders or to make co feasible.
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