This q. is too long and nasty formatted to post. It is about calculating wacc. We are given Mkt Value of Debt 38 Mkt Val of Equity 173 Target Debt to Equity 35% I calced the weight of debt as 38/(173+38) and Equity 173/(173 + 38) Schweser calcs it as 35%/(1+35%) to get the debt percentage and then subtracts it from 1 to get the equity. q: Are we always supposed to use target weights for our wacc calcs and not market? q: If not, how do we know when to use market and target?

If target is given - use target