needhelp1700

If I remember correctly from level 1 WACC is calculated on the "Marginal Cost of Capital" which would be the 13.5 so I'd disagree with schweser on this one.

In either case, there isn't a single case in the CFAI curriculum where this happens, sounds like a left over question from a time that this was actually included in the curriculum.

That's one problem with Schweser/Stalla,I was just doing some PassMaster problems and for the term structure reading, they threw some bootstrapping questions which are not tested (Level I)

- Guille