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Summarize How to Adjust the Weighted Average Cost of Capital

question 27

Essay

Summarize how to adjust the weighted average cost of capital (WACC )for the existence of operating leases,and comment on the likely effect on the WACC.


Definitions:

Labor Force

The total number of people employed and those actively seeking employment in an economy.

Discouraged Workers

Individuals who are not actively seeking employment because they believe no jobs are available for them or there are no opportunities for which they qualify.

Unemployed

Individuals who are capable of working and are actively seeking employment but are unable to find a job.

Unemployment

The state of being without a paid job despite seeking employment.

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