What weights should be used when you calculate the WACC? Discuss the choice between book value and

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 “target” for a firm whose actual is far removed from the target.

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...