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Please answer both questions! 8. The basic WACC equation The calculation of WACC involves...

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Finance

Please answer both questions!image

8. The basic WACC equation The calculation of WACC involves calculating the weighted average of the required rates of return on debt and equity, where the weights equal the percentage of each type of financing in the firm's overall capital structure. is the symbol that represents the required rate of return on short-term debt in the weighted average cost of capital (WACC) equation. fps Co. has $2.7 million of debt, $2 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt? rs 0.39 rd 0.29 rstd 0.23 0.32

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