The Weights Used in the Computation of a Project's Flotation

Multiple Choice

The weights used in the computation of a project's flotation costs should be based on the

A) market values of the company's outstanding debt and equity.
B) current book value of the company's debt and equity.
C) company's historical debt-to-equity ratio.
D) the company's target debt-to-equity ratio.
E) project's actual sources of funding.