q.10. 1&2

Question 1 What weights should we use when calculating WACC? X Selected Answer: Market (aka volatile) value weights Answers: Book (aka historical) value weights Market (aka volatile) value weights Target (aka optimal) weights Any of the above is approrpiate as long as we are consistent 0 or Which of the following is true about the cost of debt? O It should be adjusted for taxes (hint think of if it pays interest...aka kids or dividends...aka dogs) and ALWAYS adjusted for flotation costs (hint: what's the only way we raise money with debt) O It should be adjusted for taxes (hint think of if it pays interest aka kids or dividends aka dogs) and SOMETIMES adjusted for flotation costs (hint what's the only way we raise money with debt) It should NOT be adjusted for taxes (hint think of if it pays interest aka kids or dividends...aka dogs) and ALWAYS adjusted for flotation costs (hint what's the only way we raise money with debt) It should NOT be adjusted for taxes (hint think of if it pays interest aka kids or dividends aka dogs) and SOMETIMES adjusted for flotation costs (hint what's the only way we raise money with debt)