If the WACC is used in valuing a leveraged buyout, the: Answer WACC remains constant because of the final target debt ratio desired.

If the WACC is used in valuing a leveraged buyout, the: AnswerWACC remains constant because of the final target debt ratio desired. flotation costs must be added to the total Unlevered Cash Flows. WACC must be recalculated as the debt is repaid and the cost of capital changes. tax shields of debt are not available because the corporation is no longer publicly traded.