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What are the main assumptions underlying standard applications of the WACC method? Are these assumptions plausible, also in light of the existing empirical evidence? In
What are the main assumptions underlying standard applications of the WACC method? Are these assumptions plausible, also in light of the existing empirical evidence? In the alternative APV method, it is often assumed that the tax shields should be discounted using the cost of debt. Do you think this a reasonable assumption in real- world, practical applications?
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