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Incorrect Question 6 Determining the market value of a publicly traded company's common stock (i.., its equity) generally is easy, because companies are required by

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Incorrect Question 6 Determining the market value of a publicly traded company's common stock (i.., its equity) generally is easy, because companies are required by the Securities and Exchange Commission to publicly report their market capitalization each trading day financial analysts are able to accurately estimate company value using high-speed computers and current economic data released by the Federal Reserve data on shares outstanding is readily avallable, and share price of the most recent trade usually is reported to the public immediately 47 Incorrect Question 7 In the after-tax, welghted average cost of capital formula, we apply the market value welghts for debt (D/V) and for equity (E/V). These weights she be estimates of the welghts for the company's capital structure in the future always be based on market values of the existing debt and equity always be based on book value of long-term debt and book value of shareholders' equity

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