Question: b) Assume Company A has not checked its weighted average cost of capital for four years. The company management claims that since they have not

b) "Assume Company A has not checked its weighted average cost of capital for four years. The company management claims that since they have not raised capital for new projects since that time, they should not have to worry about their current weighted average cost of capital since they have essentially locked in their cost capital." Discuss this statement. (8 marks)

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