WACC Approach and Nonconstant Leverage Ratio
8 Pages Posted: 20 Feb 1998
Date Written: February 1998
Generalizing a result of Miles and Ezzel (1980) we extend the WACC approach to the case of nonconstant leverage ratios. Furthermore, it is shown that the original proof of Miles and Ezzel was incomplete.
JEL Classification: G32
Suggested Citation: Suggested Citation