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Why Is It Important to Use Market-Based Weights Rather Than

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Why is it important to use market-based weights rather than balance sheet weights when estimating a company's weighted average cost of capital?


Definitions:

Achievement

The successful attainment of goals or objectives, typically by effort, skill, or courage.

Job Dissatisfaction

A negative emotional response towards one's job, resulting from a perceived gap between expectations and reality of the job.

Organizational Policies

The rules, guidelines, and procedures established by an organization to govern its actions and decision-making processes.

Hygiene Factors

Aspects of a job environment that can prevent dissatisfaction but don't necessarily promote job satisfaction, according to Herzberg's motivation-hygiene theory.

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