If you are calculating the WACC for capital budgeting purposes and markets are not reasonably efficient, then

the estimates of expected returns are not needed.

the need for a discount rate to analyze project cash flows is not needed.

estimates of expected returns based on security prices will not be reliable.

the estimate for the cost of debt equals the cost of equity.

If a company's weighted average cost of capital (WACC) is less than the required return on equity, then the firm

		is financed with 100 percent equity.
		is perceived to be safe.
		has debt in its capital structure.
		must have preferred stock in its capital structure.