HTT 230 Week 6 CheckPoint Debt and Equity is WACC

January 24, 2016  |  By  | 

Category: Education

For more course tutorials visit Write a 200- to 300-word response explaining the concepts of debt, equity, and weighted average cost of capital (WACC). Additionally, identify why WACC is so important for a business owner to understand: Why would a business owner look to maximize the amount of debt he or she can borrow and minimize the amount of equity he or she would need? If debt is less expensive than equity, why is a business owner not able to use 100% debt and bypass the equity investor all together?

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