1. Wrong risk-free rate used for the valuation: historical average, short-term? B. Wrong beta: historical industry beta, betas of the company or of similar companies, when the result goes against common sense. Wrong formulae for levering/unlevering the beta;Errors in the discount rate calculation and concerning the riskiness of the company A
2. Debt to equity ratio used to calculate the WACC is different than the debt to equity ratio resulting from the valuation. Calculating the WACC using book values of debt and equity? E. Wrong calculation of the value of tax shields;D. Wrong calculation of WACC. Wrong definition