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Floating rate debt

Hhasanali9512y ago
Just curious to know how we would calculate WACC when the co. has a floating rate debt?
John MoffatJohn MoffatTutor12y ago#1
For exams you would use a forecast 'average' rate. In practice you would probably calculate the WACC (and therefore the NPV) using different possible rates and then use judgement as to whether or not to risk investing.
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