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Which of the following statement(s) best describes the firm's target capital structure? The weights associated with the cost of equity and debt, in calculating the

Which of the following statement(s) best describes the firm's target capital structure?

  1. The weights associated with the cost of equity and debt, in calculating the firm's weighted average cost of capital, reflect the firm's target capital structure.

  2. The weights associated with the cost of equity only, in calculating the firm's weighted average cost of capital, reflect the firm's target capital structure.

  3. The weights associated with the cost of only, in calculating the firm's weighted average cost of capital, reflect the firm's target capital structure.

  4. None of these

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