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The analysis is based on these assumptions and an appropriate price reduction charge to appraise the financial commitment carried out by Midland.

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Higher gearing reduces the WACC, but It isn't always the case. From time to time the credit card debt financing is higher adequate that case the increase in the cost of equity nullify the personal debt funding effect on WACC or in some cases it boosts the WACC in case of bigger personal debt funding.

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This created it complicated for them to mature their business and provide the best possible service to their shoppers.

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