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When computing the weighted average cost of capital, the calculations of the capital structure weights are based on ____________. I. market value of firm's debt

When computing the weighted average cost of capital, the calculations of the capital structure weights are based on ____________.

I. market value of firm's debt

II. book value of firm's equity

III. book value of preferred stock

IV. yield to maturity of firm's bonds

Multiple Choice

  • I, III and IV only

  • I and II only

  • I, II, III and IV

  • III and IV only

  • I only

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