I learned that the
Federal Reserve has lowered interest rates, which in turn lowers
WACC. According to the Board of Governors of the Federal Reserve
System, “the Federal Reserve lowered the target range for the
federal funds rate to 0 to 1/4 percent. By lowering the target
range, the Federal Reserve pushes down borrowing costs to help
consumers and businesses handle the financial challenges posed by
the coronavirus,” (Coronavirus Disease 2019 (COVID-19), 2020).
Interest Rates were lowered in order to...