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Investing Strategies / It's Earnings That Count


Subject:  Re: Question for Hewitt about WACC Date:  2/25/2008  8:14 PM
Author:  valuemoosie Number:  1440 of 1817

Hi MrT,

Thanks for the link. It helps, but I'm asking something different. Assuming I have a discount rate (Hewitt's 10 yr bond + 5%, for instance), I'm looking for the rationale behind determining the equity weighting vs. debt.

In the book, Hewitt uses the value of Stockholder's Equity, where literally every other publication I've seen uses current market value (market cap).

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