Explain why market weightings are preferable to book weightings when calculating a company’s WACC.
COMPULSORY Question–ALL students must answer question in this section The finance director of Otterplc wishes to establish its cost of capital for investment appraisal purposes.The information below has been provided:The following extract is from the statement of financial position of Otterplc as at 31stDecember 2020:Non-current Liabilities:5% Irredeemable bonds£3,600,000Long term variable rate loan£2,400,000Equity:Ordinary shares £5,000,000The current […]