In computing the cost of capital, do we use the historical costs of existing debt and equity

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In computing the cost of capital, do we use the historical costs of existing debt and equity or the current costs as determined in the market? Why?

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Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Question Posted: Oct 14, 2014 07:02 AM

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In computing the cost of capital, do we use the historical costs of existing debt and equity

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Foundations of Financial Management

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