The highest WACC is 11%, the baseline WACC is 7.4% and lowest WACCS is 2.8%. To...

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The highest WACC is 11%, the baseline WACC is 7.4% and lowest WACCS is 2.8%. To derive a WACC that better accounts for extreme scenarios, you decide to assign the following probability weights: High- est (20%); Baseline (70%); Lowest (10%). Find the probability-weighted average WACC. Clearly show your workings. The highest WACC is 11%, the baseline WACC is 7.4% and lowest WACCS is 2.8%. To derive a WACC that better accounts for extreme scenarios, you decide to assign the following probability weights: High- est (20%); Baseline (70%); Lowest (10%). Find the probability-weighted average WACC. Clearly show your workings.

Answer rating: 100% (QA)

To find the probabilityweighted average WACC we need to multiply each WACC by it... View the full answer