(5 of 29 ) Which of the following is true about calculating a firm's WACC? LO 1 All of these. The weights used for debt and equity should be based on market values instead of accountingbased book values. The weights used for debt and equity should reflect the firm's target capital structure instead of its current capital structure if there is a difference between the two. The cost of debt should be the effective after-tax cost of debt rather than the market-based YTM