Why would the WACC based on market values tend to be higher than the one based on

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Why would the WACC based on market values tend to be higher than the one based on book values if the stock price exceeded its book value?

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Fundamentals Of Financial Management

ISBN: 9780357517574

16th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Feb 26, 2024 10:00 AM

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Why would the WACC based on market values tend to be higher than the one based on

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The Weighted Average Cost of Capital WACC is a financial metric that represents the average cost a company incurs to finance its operations considerin...View the full answer

Fundamentals Of Financial Management

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