True or False: Although the use of market value weights is theoretically superior to the use of book value weights in the calculation of a firm's weighted average cost of capital $($WACC$),$ firms often use book value weights due to their relative stability compared to the daily changes in market values.

True

False

True or False: A firm's new investments, existing assets, and capital structure affect its overall degree of risk and, in turn, its weighted average cost of capital $($WACC$).$

True

False