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In order to calculate an entity weighted average cost of capital (WACC) financial weight have to be set each component in the firms capital structure.

In order to calculate an entity weighted average cost of capital (WACC) financial weight have to be set each component in the firms capital structure. the weight may be calculated as book or market value and as historic or target figures.

Explain what is meant by these four types of weights. (10 Marks)

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