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HTT 230 Week 6 CheckPoint Debt and Equity is WACC.pdf

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<strong>HTT</strong> <strong>230</strong> <strong>Week</strong> 6 <strong>CheckPoint</strong>: <strong>Debt</strong> <strong>and</strong> <strong>Equity</strong> <strong>is</strong> <strong>WACC</strong>Click Here To Buy The Tutorialhttp://www.uophelp.com/<strong>HTT</strong>-<strong>230</strong>/product-13738-<strong>HTT</strong>-<strong>230</strong>-<strong>Week</strong>-6-<strong>CheckPoint</strong>:-<strong>Debt</strong>-<strong>and</strong>-<strong>Equity</strong>-<strong>is</strong>-<strong>WACC</strong>For more course tutorials v<strong>is</strong>itwww.uophelp.comWrite a 200- to 300-word response explaining the concepts of debt, equity, <strong>and</strong> weightedaverage cost of capital (<strong>WACC</strong>). Additionally, identify why <strong>WACC</strong> <strong>is</strong> so important for abusiness owner to underst<strong>and</strong>:Why would a business owner look to maximize the amount of debt he or she can borrow <strong>and</strong>minimize the amount of equity he or she would need?If debt <strong>is</strong> less expensive than equity, why <strong>is</strong> a business owner not able to use 100% debt <strong>and</strong>bypass the equity investor all together?

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