Question: Choose the correct answer ( s ) ( 1 ) In the formula of WACC, we can estimate the return of debt r ( D
Choose the correct answers
In the formula of WACC, we can estimate the return of debt rD by taking the total interest payment divide for the total outstanding debt
In the formula of WACC, we can estimate the return of equity by using CAPM for listed firm
In the formula of WACC, if the firm is private not listed obtaining rE return of equity will be more challenge because the beta is not available
In the formula of WACC, weight of equity, called we EDE where E is book value of equity and D is book value of debt
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