Is the relevant cost of debt when calculating the wacc the, Ask an Expert

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1. What are the two possible components of new common equity (and hence two possible costs of common equity)? Which one is normally relevant, and why is this so?

Is the relevant cost of debt when calculating the WACC the interest rate on already outstanding debt or the rate on new debt? Why?
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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M938601

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