Question: In many instances, book value, rather than market value, may be used to determine the weighted average cost of capital. This is because of all
In many instances, book value, rather than market value, may be used to determine the weighted average cost of capital. This is because of all of the following EXCEPT
Question options:
market values change daily
the market prices of the various sources of capital are not easily estimated
many firms have several different issues of debt which may not be publicly held
book value is a more accurate value in determining the actual cost of capital
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