Why Do We Use Market Values Rather Than Book Values

question 71

Essay

Why do we use market values rather than book values in calculation of WACC?

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Definitions:

Cell Value

In spreadsheet applications, the data or formula contained within a cell, which can be text, numbers, dates, or logical values.

Cell Default

The pre-set value or format of a cell in spreadsheet software, which can be automatically applied to new or existing cells.

Formatting

Refers to the process of arranging or modifying the appearance of text and objects within a document, such as fonts, colors, and layout.

Selected Cell

Refers to the currently active or highlighted cell in a spreadsheet program where data can be entered or edited.