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Book value versus market value components PLEASE ANSWER ALL: QUESTIONS 1. what is the book value adjusted WACC for DMI? 2. What is the market
Book value versus market value components
PLEASE ANSWER ALL: QUESTIONS
1. what is the book value adjusted WACC for DMI?
2. What is the market value adjusted WACC for DMI?
3. Which do you think is better (A or B)
a.) The preferred choice is book value which is his original price of the debt or equity to be in the capital markets the price I would investors currently buy or sell stocks and bonds. Book value represents the true capital structure of the firm based on the amount of capital originally invested in the firm.
b.) they prefer twice is the market value which is a current price of the debt or equity in the capital market the price at which investors currently buy or sell stock or bond market values are a better reputation of a company's current capital structure which would be relevant for me the new capital.
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