Thank you for another amazing lecture! I have a question regarding the weights for cost of capital. *Can i use market value of debt with the book value of equity?* In the case of the company im analysing, there market value of debt is about 12% lower than book value, but the market capitalisation is about 2x lower than the book value of equity. While trying not to be subjective, the company seems to be undervalued, so using the mk capitalisation as the weight for equity seems off.
Thank you Professor, for another wonderful and remarkable session. Stay blessed always.
Thank you for another amazing lecture! I have a question regarding the weights for cost of capital. *Can i use market value of debt with the book value of equity?* In the case of the company im analysing, there market value of debt is about 12% lower than book value, but the market capitalisation is about 2x lower than the book value of equity. While trying not to be subjective, the company seems to be undervalued, so using the mk capitalisation as the weight for equity seems off.
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