When Discussing Weighing Schemes for Calculating the Weighted Average Cost

question 24

Multiple Choice

When discussing weighing schemes for calculating the weighted average cost of capital, the preferences can be stated as

• A) book value weights are preferred over market value weights and target weights are preferred over historic weights.
• B) market value weights are preferred over book value weights and target weights are preferred over historic weights.
• C) book value weights are preferred over market value weights and historic weights are preferred over target weights.
• D) market value weights are preferred over book value weights and historic weights are preferred over target weights.

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Definitions:

Loyalist Exiles

The British loyalists who were forced to leave the United States after the American Revolution and resettled in other British colonies.

Canada

A country in North America, known for its vast landscapes, multicultural communities, and as the second largest country by total area.

Economic Freedom

Denotes the ability of individuals in a society to take economic actions, such as starting a business or trading, free from government restrictions.

Community Interests

Shared concerns or objectives that are important to the well-being and functioning of a group or society.