Why do we use market-based weights instead of book-value-based weights when computing the WACC? 679 viewsJanuary 1, 2017 0 Darshita6.14K January 1, 2017 0 Comments Why do we use market-based weights instead of book-value-based weights when computing the WACC? 1 Answer ActiveVotedNewestOldest 0 Darshita6.14K Posted January 1, 2017 0 Comments Because we’re interested in determining what the cost of financing the firm’s assets would be given today’s market situation and the component costs the firm currently faces, not what the historic prices would have been Register or Login
