Question: One study mentioned in the chapter found, amongst other things, that businesses often based their target capital structures on statement of financial position values rather

One study mentioned in the chapter found, amongst other things, that businesses often based their target capital structures on statement of financial position values rather than on market values. Another study found that businesses often used a discount rate higher than the WACC in order to deal with operational constraints. What are the implications of these findings on investment decision making for the businesses concerned?

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