Hello,

I have a clarification question. I have this question I need to answer, which is:

In calculating the WACC, if you had to use book values for either debt or equity, which would you choose? Why?

I believe that answer is book values for debt would be the better choice. However, I am not certain as to why, (further explanation). If anyone could advise/help with providing more detail with this question, I would appreciate it.