Minimizing the weighted average cost of capital allows management to undertake a larger number of profitable projects, thereby further increasing the value of a firm.

Question

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Minimizing the weighted average cost of capital (WACC) means that the cost of financing a company's projects is reduced, which can make more projects profitable or worthwhile to pursue. This can increase the overall value of the firm by increasing its potential for profitable growth. Therefore, minimizing the WACC is generally considered a positive strategy for companies to pursue.

Minimizing the Weighted Average Cost of Capital Allows Management to Undertake