In the absense of target weights, the capital structure weights used to computin

Question

In the absense of target weights, the capital structure weights used to computing the weighted average cost of capital: A) are based on the book values of total debt and total equity. B) are based on the market value of the firm's debt and equity securities. C) are computed using the book value of the long-term debt and the book value of the equity. D) remain constant over time unless the firm issues new securities. E) are restricted to the firms debt and common stock. In the absense of target weights, the capital structure weights used to computing the weighted average cost of capital: A) are based on the book values of total debt and total equity. B) are based on the market value of the firm's debt and equity securities. C) are computed using the book value of the long-term debt and the book value of the equity. D) remain constant over time unless the firm issues new securities. E) are restricted to the firms debt and common stock. In the absense of target weights, the capital structure weights used to computing the weighted average cost of capital: A) are based on the book values of total debt and total equity. B) are based on the market value of the firm's debt and equity securities. C) are computed using the book value of the long-term debt and the book value of the equity. D) remain constant over time unless the firm issues new securities. E) are restricted to the firms debt and common stock.

Explanation / Answer

In the absense of target weights, the capital structure weights used to computin

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