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Asset earns 14 - PowerPoint PPT Presentation

Session 6

Session 6. Cost of Capital. COST OF CAPITAL. WEIGHTED AVG COST OF CAPITAL (WACC ) r = w d r d + w e r e w d = proportion of assets funded by debt r d = After-tax cost of debt w e = proportion of assets funded by equity r e = cost of equity. COST OF CAPITAL.

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Asset earns 14 - PowerPoint PPT Presentation

Session 6