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What Are the Components of the Weighted Average Cost of Capital

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What are the components of the weighted average cost of capital (WACC) and how do they differ for an MNE compared to a purely domestic firm?


Definitions:

Appropriateness

The degree to which communication actions are suitable for a particular context or environment.

Consistency

The quality of always behaving or performing in a similar way, or producing the same results, thereby allowing for reliability or dependability.

Cognitive Dissonance

A psychological phenomenon where a person experiences discomfort or distress from holding two or more conflicting beliefs, values, or attitudes.

Credibility

The characteristic of being deemed reliable and credible.

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