The Capital Structure Weights Used in Computing the Weighted Average

question 19

Multiple Choice

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

• A)are based on the book values of total debt and total equity.
• B)are based on the market value of the firm's debt and equity securities.
• C)are computed using the book value of the long-term debt and the book value of equity.
• D)remain constant over time unless the firm issues new securities.
• E)are restricted to the firm's debt and common stock.

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