Calculating WACC in steps,”1. Determine the cost of each individual source of financing; the component costs2. Stock: CAPM, Build-up Method

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Calculating WACC in steps,”1. Determine the cost of each individual source of financing; the component costs2. Stock: CAPM, Build-up Method

Gordon Model3. Debt: borrowing rate4. Calculate the weighted average of the after-tax cost of each source (plug costs in)5. Multiply weights times cost for each component6. Weights should be based on market value”

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