Haag, Valentin Georg; Koziol, Christian - In: Schmalenbach Journal of Business Research (SBUR) 75 (2023) 1, pp. 37-69
In this paper, we revisit a frequently employed simplification within the WACC approach that company cost of capital kV is supposed to be invariant to the debt ratio and therefore equal to the unlevered cost kU . Even though we know from Miles and Ezzell (1980) that kV formally differs from kU ,...
