12) The WACC (weighted average cost of capital) may not be appropriate if: a) all projects have of the firm have the same risk profile b) there are distinct operating divisions with projects of different risk levels c) the NPV is negative when using the WACC as the discount rate d) the WACC should always be used when evaluating new projects e) the required rate of return is greater than or less than the IRR 1.3) The capital structure weights used in 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 equity d) remain constant over time unless the firm issues new securities e) depend on the firm's tax rate