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Which capital structure must consider estimating WACC

Which capital structure must we consider when estimating the WACC for a subsidiary valuation: the one which is reasonable according to the risk of the subsidiary’s business that the average of the company or the one the subsidiary as “tolerates/permits”?

E

Expert

Verified

The reasonable one as per to the business risk of the subsidiary, that the average of the company or the one this subsidiary as “tolerates/permits”.

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