Capital structure/WACC + Operating leases
How to find the optimal capital structure and WACC for acquisition/buyout valuation of an unlevered and private retail company, that has large amounts of capitalized operating leases (90% of balance sheet total)? Without operating leases, one would determine optimal cap structure and use for WACC to discount FCFF, but how do the capitalized operating leases effect this procedure (and optimal cap structure)?
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