Question
16. What will be the impact of using book value of debt in WACC calculation if interest rates have increased substantially since a firms long-term
16. What will be the impact of using book value of debt in WACC calculation if interest rates have increased substantially since a firms long-term bonds are issued? ____ A)The debt-to-market value ratio will be overstated B)There is no impact on WACC calculation C)The debt-to-market value ratio will be understated D)Undetermined due to no information on interest rates
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Public Finance
Authors: Laurence S. Seidman
1st Edition
0073375748, 978-0073375748
