The Weights Used in Calculating the Firm's Weighted-Average Cost of Capital

question 31

Multiple Choice

The weights used in calculating the firm's weighted-average cost of capital are equal to the proportion of debt and equity ____.

• A) used to finance the project
• B) used to finance the projects undertaken last year
• C) in the industry average capital structure
• D) in the firm's target capital structure
• E) none of the above