Weighted average cost of capital WACC flashcards

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What is the weighted average cost of capital for a firm? It is the rate of return a firm must earn on its existing assets to maintain the current value of its stock
If a firm uses its WACC as the discount rate for all of the projects it undertakes then the firm will tend to reject some positive net present value projects. II. accept some negative net present value projects. III. favor high risk projects over low risk projects. IV. increase its overall level of risk over time.

What is the weighted average cost of capital for a firm?

If a firm uses its WACC as the discount rate for all of the projects it undertakes then the firm will tend to

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