Our company (A) is going to buy the other company (B). We need to value the shares of B and, thus, we will use three options of the structure Debt/Shareholders’ Equity in order to obtain the WACC as:
1) Present structure of A and B, and
2) Structure used by A to finance the acquisition of B’s shares.
We will value the company B through applying these three options and then take as a reference average of the results. Is it correct?