Which of the following is not needed to determine a firm's WACC?
A)The book value of the equity.
B)The market value of the debt.
C)The current share price.
D)The current yield on preferred shares.

Question

Quizplus · Accepted Answer

The book value of the equity is not needed to determine a firm's Weighted Average Cost of Capital (WACC). WACC calculations use market values rather than book values because market values reflect the current cost of capital.

Which of the Following Is Not Needed to Determine a Firm's