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Do we use book value or fair value of debt+equity?

I think it's book value?

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Thanks Dreary, didn't see that post.

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Thanks all. I understand that completely, but where does the $200,000 from on #34 EOC Q. Reading 29...

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I have only seen it based on beginning value of TA. This is not the same as equity + debt, but let us hope they don't get too picky.

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cost of capital=$WACC

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also think in common sense, you wanna start a business, what do you use to start it?
borrowed money or investors money

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total capital is equity plus debt
think of the wacc formula - it measures the cost of debt and the cost of equity so that's capital

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