Page 47 - F2 Integrated Workbook STUDENT 2019
P. 47

Cost of capital





                           Using WACC





               WACC should only be used when performing an investment appraisal if:

                    the capital structure is constant,


                    new investment carries same business risk profile of entity,

                    new investment is marginal to the entity.





























































                                                                                                       39
   42   43   44   45   46   47   48   49   50   51   52