Multiple Choice
Which of these statements is true regarding calculating weights for WACC?
A) If we are calculating WACC for the firm, then equity, preferred stock and debt would be the entire book value of each source of capital.
B) If we are calculating WACC for the firm, then equity, preferred stock and debt would be the entire market value of each source of capital.
C) If we are calculating WACC for a project, then equity, preferred stock and debt would be the entire book value of each source of capital.
D) If we are calculating WACC for a project, then equity, preferred stock and debt would be the entire market value of each source of capital.
Correct Answer:
Verified
Correct Answer:
Verified
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