Explain why we should use rd and capital structure weights, Corporate Finance

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Explain why we should use rd and capital structure weights

Problem

To find the WACC, we also need to find the Rd and the capital structure weights. While the Rd of the comparable firm is given, use M&M proposition II to explain why we should use the Rd and capital structure weights of the comparable firm to calculate the WACC, rather than those of Ameritrade.

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Corporate Finance: Explain why we should use rd and capital structure weights

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Corporate Finance: Explain why we should use rd and capital structure weights

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