Finance division evaluates investments making use of “Weighted Average Expense of Money” (Wacc) as a hurdle amount to price reduction the dollars flows for an expense possibility. This Wacc is calculated from two subgroups; price of fairness and cost of financial debt, giving ideal weightage to every group.

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The two inputs are As a result the debt ratio in full funds along with the relevant debt servicing Expense. The expense of credit card debt for each of the divisions of MC is calculated using the beneath two inputs;

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