Buy custom Coke Vs. Pepsi
Essay's paper info
Topic: |
Business
|
Number of pages / Number of words: |
5 / 1375 |
Essay's paper body
Firms must use capital
for operations. We want to know what the cost of that capital is to that firm. Therefore we
look at the cost of the companiesâ debt, the companiesâ equity, and other costs when
applicable such as preferred. Once we determine these costs we weight them so they
reflect the true structure of the company...
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Once we determine these costs we weight them so they
reflect the true structure of the company. Calculating the WACC is important because it
is the opportunity cost of capital or what the owners would expect to earn on their money
in an equally risky project elsewhere. It is the financial managers who usually set the
WACC...
Essay fragment
General points of the essay
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