Theres an issue of historical versus market value with respect to both the cost of capital components

Question:

There’s an issue of historical versus market value with respect to both the components and the amounts of those components used in developing weights. We’re willing to accept an approximation for the weights, but not for the cost/returns. Why?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...