Question: The capital structure weights used in computing the weighted average cost of capital are a . based on the market value of the firm s

The capital structure weights used in computing the weighted average cost of capital are
a.
based on the market value of the firms debt and equity securities.
b.
computed using the book value of the long-term debt and the shareholders equity.
c.
based on the face value of the firms debt.
d.
constant over time provided that the debt-equity ratio changes in unison with the market values.

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