CONSTANT WACC vs VARIABLE WACC

Issue:
It is known that cost of capital is market-driven, comparable to other investments of similar risk.

If this is the case, then we only know what WACC is as of now. Meaning that constant WACC is making more sense than variable WACC, since we will never know the cost of capital known in advance for Y2, Y3, Y4, Y5, etc?

Posted in ARTICLES & VIDEOS, COST OF CAPITAL.

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