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Which of the following statements is most accurate? Ideally we would use the market value of debt (as opposed to the book value of debt)

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Which of the following statements is most accurate? Ideally we would use the market value of debt (as opposed to the book value of debt) to find the WACC. O It is acceptable to use the book value of equity in the WACC calculation. The component cost of debt is the yield to maturity on Treasury securities. O The cost of debt is often greater than the cost of equity because of the tax shield of equity. O Multiplying rd times (1 - 1) produces the before-tax cost of debt

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