WACC can simply be used as a discount rate which presumes risk of a particular
or equal specific is to the overall risk the business environment. of firm’s A
percentage premium should WACC recognize discounting rate be added to an apt
if the project higher risk than the norm. has
b b WACC assumes the capital structure in place is ideal, which may not be
achievable real world. in
b b WACC is based on market values of capital that keep changing on thus
