Question
Of the following, which is the most important assumption that is required to use the WACC? a.Firms rebalance their capital structure to maintain a constant
Of the following, which is the most important assumption that is required to use the WACC?
a.Firms rebalance their capital structure to maintain a constant debt ratio.
b. A company must have actively traded securities for it to be able to compute its WACC.
c. Any executive bonuses must be added back when calculating the firm's free cash flows.
d. If the firm issues new debt, then it must adjust its WACC.
please explain the reason and logic
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ISE Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus
12th International Edition
1265450099, 9781265450090
