Why why not each question 5 calculation of waccs for

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Unformatted text preview: Calculation of WACCs for Midland’s divisions Midland’s This is Problem set 1 as a homework Calculate WACCs for Midland’s divisions Hint: How can we get unlevered betas (i.e. asset Hint: betas) for the divisions? How would you use the information for comparables in Exhibit 5? information Question 6: Uses of WACC Question Should anticipated uses affect the WACC Should calculation? For example, should the same WACC be used for both capital budgeting and performance assessment related to compensation schemes? Should hurdle rates differ from WACC? Should WACC be adjusted for country/political Should risk? risk?...
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