1. Why IB 2. Why wacc is genearlly higher than terminal growth rate

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IB offers challenging work, high compensation, and opportunities for growth. WACC is higher than terminal growth rate due to risk and cost of capital.

IB offers intellectually stimulating work and high compensation
Opportunities for growth and advancement are abundant in IB
WACC is higher than terminal growth rate due to risk and cost of capital
WACC considers the cost of equity and debt, while terminal growth rate assumes a constant growth rate
WACC reflects the risk associated with a company's operations and financing structure
Terminal growth rate is a long-term growth rate assumption used in discounted cash flow analysis
For example, a company with a high debt-to-equity ratio will have a higher WACC than a company with a low debt-to-equity ratio
Similarly, a company operating in a highly volatile industry will have a higher WACC than a company operating in a stable industry

1. Why IB 2. Why wacc is genearlly higher than terminal growth rate

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