Type of estimation calculation

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Someone mentioned that a common mistake that happens when "a company estimates the WACC is using the coupon rate on a company's existing debt as a pre-cost of debt". Companies that are not experienced in accounting or finance could easily use the wrong data to estimate the WACC. It is hard to use any type of estimation calculation because it will never be perfect as one can not predict the future. The use of the correct information is extremely important. What do you think a company can do to ensure it is always using the most accurate data for the calculations?

Reference no: EM132540990

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