When Discussing Weighing Schemes for Calculating the Weighted Average Cost

Multiple Choice

When discussing weighing schemes for calculating the weighted average cost of capital, ________.

A) market value weights are preferred over book value weights and target weights are preferred over historical weights
B) book value weights are preferred over market value weights and target weights are preferred over historical weights
C) book value weights are preferred over market value weights and historical weights are preferred over target weights
D) market value weights are preferred over book value weights and historical weights are preferred over target weights