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To make accurate accept or reject decisions, it is important

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To make accurate accept or reject decisions, it is important for an organization to determine its WACC. Not all organizations have preferred stock in their capital structures; in such a situation, an organization's weighting for preferred stock in the WACC would be zero. Although organizations get an interest deduction from debt, they find that if they use too much debt in their capital structures, the cost of debt rises because of the increased risk of bankruptcy from such a scenario.
To make accept or reject decisions, it is important for an organization to compute discount rates.

What are the various ways in which an organization computes its cost of equity?
How does an organization compute its cost of debt?
How does an organization compute its overall WACC?
Submitted: 5 years ago.
Category: Homework
Expert:  Jabi replied 5 years ago.
Hello dear client,

Is there any word requirement or deadline for this one?

-Jabi
Customer: replied 5 years ago.
Nope, due 3/13
Expert:  Jabi replied 5 years ago.
Okay
Expert:  Jabi replied 5 years ago.
THIS ANSWER IS LOCKED!

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