When Computing the Weights to Be Used in a Project's

question 28

Multiple Choice

When computing the weights to be used in a project's WACC equation,you should use the

• A)proportions of debt and equity that will finance the project.
• B)current market values of debt and equity.
• C)average market weights of debt and equity that are expected over the project's life.
• D)average book weights of debt and equity that are expected over the project's life.
• E)current book values of debt and equity.

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Definitions:

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