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T1 KCT 7 (Tutorial) Vince continues by presenting a new scenario: The b...

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T1 KCT 7 (Tutorial)

Vince continues by presenting a new scenario:

The briefing sheet above is up-to-date for this month. However,

next month, we are projecting a possible increase in Ke by 155 basis points. Cost

of debt capital remains unchanged.

If by next month, we have not made a decision to acquire any assets yet, recalculate WACC using the new Ke and determine what our recommendation should be.

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