How can the costs of preferred stock and debt be estimated

Reference no: EM131328440

1. Why do you think it is important to use the market values of debt and equity, rather than book values, to calculate a firm's WACC?

2. Assuming that there are no corporate income taxes, how can the costs of preferred stock and debt be estimated without finding a preferred stock and a bond beta?

Reference no: EM131328440

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