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

Question

Quizplus · Accepted Answer

The market value of equity should be used in the WACC calculation because it reflects the current market value of the company's equity and provides a more accurate measure of the shareholders' required return on investment. The book value of equity may be outdated and might not reflect the company's current financial situation or future growth prospects.

For Purposes of Computing the WACC, If the Book Value