Which of the following is not a step in the WACC valuation method? - ProProfs Discuss
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Which of the following is not a step in the WACC valuation method?



A. Compute the value of the investment, including the tax benefit of leverage, by discounting the free cash flow of the investment using the WACC.
B. Compute the weighted average cost of capital.
C. Determine the free cash flow of the investment.
D. Adjust the WACC for the firm s current debt/equity ratio.

This question is part of 438 Chapter 18
Asked by Slodude, Last updated: Mar 30, 2020

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1 Answer

John Smith

John Smith

Answered Dec 09, 2016

Adjust the WACC for the firm s current debt/equity ratio.
 

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