Question: The capital structure weights used in computing the weighted-average cost of capital are based on the book values of total debt and total equity. are

The capital structure weights used in computing the weighted-average cost of capital

are based on the book values of total debt and total equity.

are based on the market value of the firm's debt and equity securities.

are computed using the book value of the long-term debt and the book value of equity.

remain constant over time unless the firm issues new securities.

are restricted to the firm's debt and common stock.

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