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    Principles of Corporate Finance Study Set 3
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    Exam 9: Risk and the Cost of Capital
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    Suppose That an Analyst Incorrectly Calculates WACCs Using Book Values
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Suppose That an Analyst Incorrectly Calculates WACCs Using Book Values

Question 41

Question 41

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Suppose that an analyst incorrectly calculates WACCs using book values of debt and equity instead of market values. The resulting WACC estimates will generally be too high.

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