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Can we use the acquiring firms WACC to value the target firm? If so what would be the reason?

Finance
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It does not work that way in my opinion. You should determine the target's WACC using competitor's Adj. Unlev. Beta. in order to obtain the Target's Beta Re-lev. Then you multiply it for the ERP and by adding the RF rate you find the cost of equity. If you find the Target's WACC you can calculate the DCF, and obtain a proper valuation. I don't see why you should use the acquiring firms WACC to do that!

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