Written Assignment: Practical Effects in using the Weighted Average Cost of Capital (WACC) The calculation of the cost of capital (WACC) has several important quirks that are important to an acceptable calculation and evaluation of the cost of capital. Two of the most important are adjustments to the WACC in the cost of debt based on the firm's tax rate and for the effect of growth (g) on the cost of equity. To that end, you need to appreciate where g is used in the component costs of capital formulas and how they affect the overall cost of capital. Post an explanation of what would happen to a firm if the WACC calculation uses an estimate of growth estimated to be 4% instead of the actual rate of 8%. What would be the major effect on the firm seeking to obtain new capital given that mistaken growth estimate