The Weighted Average Cost of Capital (WACC) is influenced by several factors. These include the cost of equity, the cost of debt, the risk-free rate, the market risk premium, the company's tax rate, and the company's debt-to-equity ratio. Additionally, the company's risk profile, as indicated by its unlevered beta, also plays a significant role. A higher unlevered beta indicates a more volatile and riskier company, which can increase the WACC.
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