... after-tax adjustment to the WACC is calculated automatically.Interest Rates, the Company’s WACC, and Stock ValuesLet’s take a closer look at the relationship among interest rates, a com-pany’s ... versus Book ValueFinancial theory states that the market capitalization of a company is equal to the total market value, not book value, of the outstanding debt,preferred stock and common stock ... equity riskpremium in his cost of capital calculations and in his valuation exam-ples.Investors also have noticed this decrease in the historic equity riskpremium, and it appears to us that their...