When calculating the WACC for a firm, one should only use the book values of debt and equity.

Name: When calculating the WACC for a firm, one should only use the book values of debt and equity.
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When calculating WACC, it is recommended to use the market values of debt and equity instead of book values as market values reflect the current market conditions and may offer a more accurate representation of the firm's financing costs.

When Calculating the WACC for a Firm, One Should Only