Multiple Choice
Which of these makes this a true statement? When determining the appropriate weights used in calculating a WACC, it should reflect
A) the relative sizes of the total book capitalizations for each kind of security that the firm issues.
B) the relative sizes of the total market capitalizations for each kind of security that the firm issues.
C) only the market after-tax cost of debt.
D) only the market after-tax cost of equity.
Correct Answer:
Verified
Correct Answer:
Verified
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