If a firm is using cash or reinvesting in itself, would they use the current federal interest

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If a firm is using cash or reinvesting in itself, would they use the current federal interest rate plus a theoretical premium or would they use their current rate on existing debt? How would a firm using cash to reinvest calculate their WACC?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Apr 08, 2024 01:53 PM

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If a firm is using cash or reinvesting in itself, would they use the current federal interest

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When a firm is using cash to reinvest in itself the relevant rate to use in the calculation of the Weighted Average Cost of Capital WACC is a rate tha... View the full answer

Microeconomics An Intuitive Approach with Calculus

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