Which of the Following Statements Is Correct

question 13

Multiple Choice

Which of the following statements is correct?

• A) The weighted average cost of capital is calculated on a before-tax basis.
• B) An increase in the market risk premium is likely to increase the weighted average cost of capital.
• C) The weights of debt and equity should be based on the balance sheet because this is the most accurate assessment of the valuation.
• D) All of these choices are correct.