Question about WACC & Market Value of Debt
Do people actually calculate market value of debt when calculating WACC? I understand the formula calls for market value of debt but every modeling course I've taken has just used Book Value of Debt. Would this be incorrect to use Book Value of Debt (i.e. Total Debt) on the job?
Also, if you are supposed to be using MV of debt, how would I calculate this?
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