When Selecting the Weights to Be Used in WACC Calculations

question 13

Multiple Choice

When selecting the weights to be used in WACC calculations which values should be used?

• A) Risk free values
• B) Capitalised values
• C) Market values
• D) Balance sheet values

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Definitions:

O2

Symbol for oxygen, a vital element necessary for respiration in most living organisms.

Prostaglandins

Lipid compounds that have diverse hormone-like effects in animals, including mediating inflammation and pain.

Surfactant

A substance that reduces surface tension, allowing for the easier exchange of gases in the lungs and preventing alveolar collapse.

Manufacturing Firms

Companies that produce and sell goods using raw materials, labor, and machinery.