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- 2011-7-2
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- 2016-4-18
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You should understand the formulas rather than to just memorize variables. Like wacc, it is made of the weights of the capital that is used. You look at the question for the givens and then just plug it in. Remember for kd there is the (1-t) as well. It is better than memorizing the variables wacc = wd*kd*(1-t) + wpref*kp + we*ke without knowing why. |
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