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Higher gearing cuts down the WACC, but It's not at all always the case. Occasionally the debt financing is high plenty of that case the rise in the price of equity nullify the credit card debt financing impact on WACC or often it improves the WACC in case of higher financial debt financing.
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The personal debt financing need to be realistic that minimize the WACC otherwise it is actually worthless to consider added gearing challenges.
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Exploratory: A case study whose objective should be to recognize the investigate queries or methods to be used in a subsequent study.
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