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In Computing the Weighted Average Cost of Capital,the Weights Are

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In computing the weighted average cost of capital,the weights are either book value or market value weights based on actual capital structure proportions.


Definitions:

Total Utility

The total satisfaction or benefit obtained from consuming a particular quantity of goods or services.

Marginal Utility

Describes the additional satisfaction or usefulness obtained from consuming one more unit of a product or service.

Total Utility

The complete fulfillment experienced from the consumption of a specific overall amount of a product or service.

Consumer Surplus

The gap between what consumers are prepared and able to spend on a product or service and the actual sum they end up paying.

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