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.
D
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Indicate whether the statement is true or false
When we express the value of a cash flow or series of cash flows in terms of dollars today, we call it the ________ of the investment. If we express it in terms of dollars in the future, we call it the ________
A) present value; future value B) future value; present value C) ordinary annuity; annuity due D) discount factor; discount rate