A company has a market value of equity divided by book value of equity that is greater than 1.0. If this company uses book value of equity to determine their WACC, they will derive a value that is the market based WACC. Because O a Greater than the ratio of debt to equity will be greater than if the ratio was based on market values Ob. Greater than the ratio of debt to equity will be less than if the ratio was based on market values OC Equivalent to the ratio of debt to equity is the same whether book values or market values are used Od Less than the ratio of debt to equity will be less than if the ratio was based on market values Oe. Less than; the ratio of debt to equity will be greater than if the ratio was based on market values