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When calculating a firm s weighted average cost of capital, the capital structure weights: Multiple Choice are based on the book values of debt and
When calculating a firms weighted average cost of capital, the capital structure weights:
Multiple Choice
are based on the book values of debt and equity.
are based on the market values of the outstanding securities
depend upon the financing obtained to fund each specific project.
remain constant over time unless new securities are issued or outstanding securities are redeemed.
are restricted to debt and common stock.
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