What does the U-shape WACC graph tell us?
Debt is cheap at all levels
Debt is always cheaper
debt is constant
Debt is cheap at low levels
Debt and equity are same
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capital structure of a company refers to the mixture of equity and debt ... In summary, when trying to find the lowest WACC, you: ... The cost of equity is directly linked to the level of gearing
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Dept at cheap at low levels
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