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.

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Definitions:

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that prevents the government from taking private property for public use without just compensation.

Just Compensation

The fair market value pay required by the government to be given to a property owner when the government takes private property for public use under the power of eminent domain.

Fifth Amendment

An amendment to the U.S. Constitution that provides several rights to individuals, including protection against self-incrimination and the guarantee of due process.

Fourteenth Amendments

An amendment to the US Constitution granting citizenship to all persons born or naturalized in the United States and guaranteeing all citizens equal protection under the law.