The Capital Structure Weights Used in Computing the Weighted Average

question 52

Multiple Choice

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

• A) constant over time provided that the debt-equity ratio changes in unison with the market values.
• B) based on the face value of the firm's debt.
• C) computed using the book value of the long-term debt and the shareholder's equity.
• D) based on the market value of the firm's debt and equity securities.
• E) limited to the firm's debt and common stock.

---

Definitions:

Tropical Rain Forest

A dense, evergreen forest found in areas of heavy rainfall in the tropics, known for its immense biodiversity and complex ecosystem.

Biome

A large community of plants and animals that occupies a distinct region defined by its climate and dominant vegetation.

Benthic Environment

Ocean floor divided into zones based on distance from land, light availability, and depth.

Exclusively

Without involving anything or anyone else; solely.