Why will stock price affect your capital structure, Finance Basics

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Why will stock price affect your capital structure

Problem

If you use market values to calculate the WACC, and your stock price is volatile or bond prices become unstable, will this affect your capital structure and, in turn, the investment decision the firm makes? In other words, can the WACC be volatile?

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Finance Basics: Why will stock price affect your capital structure

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Finance Basics: Why will stock price affect your capital structure

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