Should firms focus on book value or market value capital structures? How would the calculated WACC be

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Should firms focus on book value or market value capital structures? How would the calculated WACC be affected by the use of book weights rather than market weights?

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Intermediate Financial Management

ISBN: 978-1111021573

10th Edition

Authors: Brigham, Daves

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Question Posted: Feb 03, 2012 01:49 AM

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Should firms focus on book value or market value capital structures? How would the calculated WACC be

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The primary focus should be on the market value capital structure for a number of reasons Firms are interested in maximizing market values so decision...View the full answer

Intermediate Financial Management

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