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The capital structure weights used in computing a firm's weighted average cost of capital: Are based on market values of the firm's debt and equity.

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The capital structure weights used in computing a firm's weighted average cost of capital: Are based on market values of the firm's debt and equity. Depend upon the financing obtained to fund each specific project. Are based on book values of the firm's debt and equity. Remain constant over time unless the firm issues new securities

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