How do we determine what weights to use? Ideally, we want to use the proportion of each source of capital that the company would use in the project or company.
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2.2. Weights of the Weighted Average How do we determine what weights to use? Ideally, we want to use the proportion of each source of capital that the company would use in the project or company. If we assume that a company has a target capital structure and raises capital consistent with this target, we should use this target capital structure. The target capital structure is
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