question archive Describe the logic underlying the use of target weights to calculate the weighted average cost of capital (WACC) and compare this approach with the use of historical weights

Describe the logic underlying the use of target weights to calculate the weighted average cost of capital (WACC) and compare this approach with the use of historical weights

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Describe the logic underlying the use of target weights to calculate the weighted average cost of capital (WACC) and compare this approach with the use of historical weights. Which is the preferred weighting scheme and why? Support your rationale with at least one citation from the literature.

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