Using actual vs target

CFA Level II Equities
#1

For WACC we should use target over actual weights.

In previous studies… maybe level 1? i remember other places in maybe other subject say you should use actual weights when given… can anyone think of any examples?

Thanks

#2

I’ve always heard that if target weights are available (and reasonable), you should use them. If target weights aren’t available, then you should use the actual weights if they’re reasonable. If the actual weights are unreasonable, you should use industry average weights.