The capital structure weights which are used to compute a firm's weighted average cost of capital are based on the:

Multiple Choice

• Relative book values of the firm's debt and equity.

• Total face value of the outstanding debt and the book value of the firm's equity.

• Total face value of the outstanding debt and the market value of the firm's equity.

• Market value of both the firm's debt and its equity.

• Historical average debt-equity ratio of the firm.