for purposes of computing the WACC, if the book value of equity exceeds the market value of equity, then:

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The market value of equity should be used because it reflects the current valuation of the business based on investor sentiment and market conditions. Book value of equity is based on historical accounting records and may not reflect the true value of the business in the present. Retained earnings should be included in the calculation of the market value of equity as they represent the earnings that have been reinvested in the business and contribute to the overall value of the company.

For Purposes of Computing the WACC, If the Book Value