A manager contends that a firm should use historical or


Question: A manager contends that a firm should use historical or book weights when estimating a firm's WACC because they are easily observable and can guide the estimation process. Provide a counter to this argument for a rapidly growing firm that raises large amounts of external capital. Would the answer change for a well-established firm that does not expect to raise capital?

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Accounting Basics: A manager contends that a firm should use historical or
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