Question: The capital structure weights used in computing the weighted average cost of capital: C. Are computed using the book value of the long-term debt and
The capital structure weights used in computing the weighted average cost of capital:
| C. Are computed using the book value of the long-term debt and the book value of equity. | ||
| A. Are based on the book values of total debt and total equity. | ||
| B. Are based on the market value of the firm's debt and equity securities. | ||
| D. Remain constant over time unless the firm issues new securities. |
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