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The assessment extends past the valuation of Pinkerton alone, encompassing a broader viewpoint of how the acquisition impacts the overall value of CPP. Two unique funding tactics are introduced:
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Finance division evaluates investments using “Weighted Normal Price of Capital” (Wacc) like a hurdle level to discount the income flows for an expenditure opportunity. This Wacc is calculated from two subgroups; cost of equity and price of debt, giving acceptable weightage to each group.