InQ.13 to claculate WACC sir told to take target weights irrespective of how you procure funds than why they use weights of funds procure and not of targets to claculate WACC
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The weights given in the question are not optimal or target weigt that is why we use new weights given…
In this question the weights are –
Total Funds = 55
Weight for stock 60% and 40 % for debt.