Question
Which statement is true? A. If market weights can be calculated, we use market weights rather than book weights to calculate WACC. B. If we
Which statement is true?
| A. | If market weights can be calculated, we use market weights rather than book weights to calculate WACC. | |
| B. | If we don't know the book weights of the various sources of capital in the capital mix, we cannot calculate the market weights either. | |
| C. | The same WACC calculated for a company is used for all new projects regardless of their riskiness. | |
| D. | Cost of debt goes up after it is adjusted for tax. |
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
27th edition
978-1337272094, 1337272094, 978-1337514071, 1337514071, 978-1337899451
