Question: Choose the correct answer ( s ) ( 1 ) In the formula of WACC, we can estimate the return of debt r ( D

Choose the correct answer(s)
(1) In the formula of WACC, we can estimate the return of debt r(D) by taking the total interest payment divide for the total outstanding debt
(2) In the formula of WACC, we can estimate the return of equity by using CAPM for listed firm
(3) In the formula of WACC, if the firm is private (not listed) obtaining r(E) return of equity will be more challenge because the beta is not available
(4) In the formula of WACC, weight of equity, called w(e)= E/(D+E) where E is book value of equity and D is book value of debt
Question 13

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