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Consulting Case Interview Practice Questions

Category - Facts to Know

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Which is a sensible number to use as weighted average cost of capital (WACC) for a company in the S&P 500?

Explanation

Answer: C - WACC increased substantially due to the financial meltdown, however 10% is a reasonable number to use. All the other choices are too high or too low.

Key Takeaway: Adjust up for companies that have liquidity problems or high cost of borrowing.

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Consulting Case Interview Practice Questions

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Consulting Case Interview Practice Questions

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