Why do we use market-based weights instead of book-value-based weights when computing the WACC?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Question Posted: Sep 23, 2014 10:40 AM

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Why do we use market-based weights instead of book-value-based weights when computing the WACC?

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We use marketbased rather than bookvaluebased weights because we are interested in determining wh...View the full answer

Finance Applications and Theory

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