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1. Why is the WACC used in capital budgeting?
2. Explain the various approaches that are used to estimate the
cost of common equity.
3. Explain at least one factor that affects the cost of capital and
describe whether or not is is something that a company can
control.
4. Provide and summarize a real world example of a publicly
traded firm issuing or redeeming capital. What reasons were
given for the decision and how does it appear to effect their
overall cost of capital?

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