When Discussing Weighing Schemes for Calculating the Weighted Average Cost

question 121

Multiple Choice

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

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