من قبل
Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC
The two potential effects on WACC of increasing gearing level are :-
1. Computation of equity capital.
2. Assignment of weight to the cost of specific source of financing. Assignment of weight can be possible either on basic of historical weighting or marginal weighting.
The increasing gearing level are :-
A. Book value weight
B. Market value weight
