Question: What weights should be used when you calculate the WACC? Discuss the choice between book value and market value weights, and the role of the

What weights should be used when you calculate the WACC? Discuss the choice between book value and market value weights, and the role of the “target” capital structure for a firm whose actual capital structure is far removed from the target.

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The weights used should be bases on the firms target capital structure To illustrate suppose a compa... View full answer

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