With no debt, the WACC is the cost of equity plus the required rate of return on the firm's underlying assets.

Name: With no debt, the WACC is the cost of equity plus the required rate of return on the firm's underlying assets.
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WACC (Weighted Average Cost of Capital) is a weighted average of the cost of equity and the cost of debt. If there is no debt, WACC is simply the cost of equity, not the sum of the cost of equity and the required rate of return on the firm's underlying assets.

With No Debt, the WACC Is the Cost of Equity