Why do we use market weights instead of book-value

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Question # 00853153 Posted By: wildcraft Updated on: 04/14/2024 11:39 PM Due on: 04/15/2024

Subject Business Topic General Business Tutorials:

Question

1- Why do we use market weights instead of book-value-based weights when computing WACC?

2- Would you ever adjust the cost of capital when analyzing a project? Why or why not?

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score 2 · Accepted Answer · 04/14/2024 11:40 PM

Solution: Why do we use market weights instead of book-value

Tutorial # 00848634 Posted By: wildcraft Posted on: 04/14/2024 11:40 PM

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